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arlik [135]
3 years ago
9

The Graves Corporation was incorporated in 2018 and incurred a net op-erating loss of $35,000. The company’s operating income in

2019 was $47,000. Because of a downturn in the local economy, the company suffers a net operating loss of $21,000 in 2020. What is the treatment of the 2020 loss? How would your answer change if Graves were an S corporation?
Business
1 answer:
kvv77 [185]3 years ago
6 0

Answer:

The 2018 loss was carried forward and decreased the corporation's tax liability during 2019. The 2020 loss should also be carried forward to offset any future gains and reduce future tax liabilities. A company can carry forward a loss indefinitely, since it is allowed to deduct a maximum of 80% of a future year's net income.

If this was an S corporation, it would be pass through entity that is not taxed directly, instead, the owners are taxed. Therefore, this $21,000 loss will be distributed proportionally among all the stockholders, and they must deduct their taxes independently.

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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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3 years ago
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astra-53 [7]

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Cost-plus pricing is likewise called markup pricing. it is a pricing technique in which a set percentage is brought on the pinnacle of the cost it takes to produce one unit of a product (unit cost). The resulting variety is the selling rate of the product.

The concept in the back of cost-plus pricing is straightforward. the seller calculates all fees, fixed and variable, that have been or can be incurred in the production of the product, and then applies a markup percentage to these costs to estimate the asking charge.

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Learn more about Cost-plus pricing here: brainly.com/question/14592779

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7 0
2 years ago
Tristan transfers property with a tax basis of $900 and a fair market value of $1,200 to a corporation in exchange for stock wit
nataly862011 [7]

Answer:

Option B is correct.

Corporation tax basis in the property received= $1,100

Explanation:

Option B is correct.

Corporation tax basis in the property received is calculated by adding the tristan transfers property with a tax basis of $900 and $200 which is the profit/gain tristan got.

Corporation tax basis in the property received=tristan transfers property with a tax basis + Gain Received

Corporation tax basis in the property received= $900 + $200

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4 years ago
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How to calculate for opening bank balance​
nignag [31]

Answer:

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Therefore;

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Explanation:

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