contestada

n its first year, Camco Inc. generated a $92,000 net operating loss, and it made a $5,000 cash donation to a local charity. In its second year, Camco generated a $210,600 profit, and it made a $10,000 donation to the same charity. Compute Camco’s taxable income for its second year.

Respuesta :

TomShelby

Answer:

taxable income: 108,600

Explanation:

net income 210,600

carryforward (92,000)

charitable deduction (10,000)

taxable income: 108,600

from the income of the current year, we will reduce the carryforward loss and the charitable deduction of the current year. The previous year donation does not carry forward to the next year. It wil lbe filled on the previous year only.