Suppose your firm had the following taxable income amounts: 2012 ($2 million) operating loss 2013 ($2 million) operating loss 2014 ($2 million) operating loss 2015 $10 million After you "carry forward" the operating losses, what is the effective taxable income for 2015?

A. $1 million

B. $4 million

C. $0

D. $3 million

E. $2 million

Question

Business

Taylor Valencia

6 February, 07:35

Suppose your firm had the following taxable income amounts: 2012 ($2 million) operating loss 2013 ($2 million) operating loss 2014 ($2 million) operating loss 2015 $10 million After you "carry forward" the operating losses, what is the effective taxable income for 2015?

A. $1 million

B. $4 million

C. $0

D. $3 million

E. $2 million

+1

Answers (1)

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Deangelo Odom · Answer 1

Calculation of table income.

Any NOL can be set off with future operating income upto 20 year.

Year NOL/NOG

2012 (2)

2013 (2)

2014 (2)

2015 10

Taxable income 4

Option B is correct 4 million is taxable income in 2015.