Question

Mowrey Inc. has gross income of $400,000 (including $150,000 capital gain) and operating expenses of $500,000....

Mowrey Inc. has gross income of $400,000 (including $150,000 capital gain) and operating expenses of $500,000. Mowrey Inc. has an unexpired capital loss carryover of $40,000.   What is Mowrey’s net operating loss (NOL)?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Mowrey INc.'s Gross Income of $4,00,000.

Operating expenses of $ 5,00,000.

So, while computing Mowrey,s Net operating Loss we will deduct Its expenses out of its income .

NOL = Gross Income - Operating expense

NOL = $ 4,00,000 - $ 5,00,000

Therefore, Mowrey's NOL is of $1,00,000.

Note - Unexpired capital loss carryover of $40,000 will not gonna make any difference to our answer. As, it was already booked in the last year. For this year, it is of no relevance.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In 2020, Tyler Inc. had gross income from business operations of $500,000 and allowable business expenses...
In 2020, Tyler Inc. had gross income from business operations of $500,000 and allowable business expenses of $625,000. Tyler also received $150,000 in dividends from Polk Corporation. Tyler owns 13% of Polk Corporation. What is the amount of Tyler's 2020 net operating loss?
Robots, Inc. reports the following financial data for last year: Gross income from sales and services...
Robots, Inc. reports the following financial data for last year: Gross income from sales and services $200,000 Wages, cost recovery and other expenses 180,000 Dividend income from at least 20 percent owned U.S. corporations 40,000 Net operating loss carryover 20,000 Capital losses 10,000 Charitable contribution carryover 7,000 Current charitable contributions 11,000 What is Robots's charitable contribution deduction? How much of the charitable contribution carryover is used up? What is taxable income? What is the dividends-received deduction?
The following information is from Robin Hood Inc. Advertising Expenses $ (400,000) Capital Gains $ 150,000...
The following information is from Robin Hood Inc. Advertising Expenses $ (400,000) Capital Gains $ 150,000 Capital Losses (this year) $ (200,000) Capital Losses (prior year) $         -   Cost of Goods Sold $ (4,000,000) Dividend "A" income $    200,000 Dividend "B" income $      100,000 Dividend "C" income $         50,000 General and Admin Expenses $ (1,300,000) Interest Expense $ (500,000) Sales $9,000,000 Calculate Robin’s interest expense deduction assuming the following: Adjusted taxable income                    $ 35,000,000                 Business interest income                   ...
Robots, Inc. reports the following financial data for last year: Gross income from sales and services...
Robots, Inc. reports the following financial data for last year: Gross income from sales and services $200,000 Wages, cost recovery and other expenses 180,000 Dividend income from at least 20 percent owned U.S. corporations 40,000 Net operating loss carryover 20,000 Capital losses 10,000 Charitable contribution carryover 7,000 Current charitable contributions 11,000 CITE CODE SECTION AND SHOW WORK (a.) What is Robots's charitable contribution deduction? (b.) How much of the charitable contribution carryover is used up? (c.) What is taxable income?...
The following information is from Robin Hood Inc. Advertising Expenses $ (400,000) Capital Gains $ 150,000...
The following information is from Robin Hood Inc. Advertising Expenses $ (400,000) Capital Gains $ 150,000 Capital Losses (this year) $ (200,000) Capital Losses (prior year) $ - Cost of Goods Sold $ (4,000,000) Dividend "A" income $ 200,000 Dividend "B" income $ 100,000 Dividend "C" income $ 50,000 General and Admin Expenses $ (1,300,000) Interest Expense $ (500,000) Sales $9,000,000 In addition, Robin purchased equipment at the beginning of the year for $750,000. The equipment has a useful life...
Janay Lewis has the following capital gain and loss transactions for 2019. Short-term capital gain $150,000...
Janay Lewis has the following capital gain and loss transactions for 2019. Short-term capital gain $150,000 Short-term capital loss (360,000) Long-term capital gain (28%) 1,200,000 Long-term capital gain (25%) 480,000 Long-term capital gain (15%) 600,000 Long-term capital loss (28%) (450,000) Long-term capital loss (15%) (900,000)                  After the capital gain and loss netting process, what is the amount and character of Janay Lewis' gain or loss Long-term capital gain (28%)                  
[59] Gleim #: 17.4.141 We Converted, Inc., elected S corporation status in Year 2, after 10...
[59] Gleim #: 17.4.141 We Converted, Inc., elected S corporation status in Year 2, after 10 years as a C corporation. At the date of conversion, the company had a $50,000 net operating loss (NOL) carryover, which it incurred in Year 1, and a $25,000 capital loss carryover. In Year 5, the company sold a vacant piece of property it owned for 11 years. The sales price of the property was $100,000 and an original cost of $25,000. Given the...
Statement of Income Additional Data Sales $800,000 Decrease in accounts payable $30,000 Cost of sales 400,000...
Statement of Income Additional Data Sales $800,000 Decrease in accounts payable $30,000 Cost of sales 400,000 Proceeds from the sale of land 40,000 Gross profit 400,000 Increase in inventory 40,000 Cash operating expenses 100,000 Decrease in accounts receivable 5,000 Depreciation 40,000 Loss on sale of land 20,000 Net income $240,000 Using the indirect method, the net cash flow from operating activities was A $365,000. B $300,000. C $235,000. D $240,000.
Bank A’s gross interest income =5.3%, gross interest expenses = 2.5%, noninterest income = 3%, noninterest...
Bank A’s gross interest income =5.3%, gross interest expenses = 2.5%, noninterest income = 3%, noninterest expense = 3.5%, loss loss provision = 1%, securities gain = 0.1%, tax rate on income = 30%. Calculate Bank A’s net income after tax.
Compute HC Inc.’s current-year taxable income given the following information relating to its 2019 activities. Also,...
Compute HC Inc.’s current-year taxable income given the following information relating to its 2019 activities. Also, compute HC’s Schedule M-1 assuming that HC’s federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. Gross profit from inventory sales of $310,000 (no book–tax differences). Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC’s pro rata share of the corporation’s earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL), are $300,000 (no...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT