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Discussion Question 2-18 (LO. 2, 3, 7)Gold Corporation, a calendar year C corporation, was formed in 2009 and has been profitable until the current year. In 2015, Gold incurs a net operating loss.Regarding Gold Corporation's NOL carryback and carryover options, label each of the following as either an item to "Consider" or a "Don't Consider" item.Like the net operating loss (NOL) of an individual, the NOL of a corporation may be carried back 2 years and forward 20 to offset taxable income for those years. Similarly, corporations also may elect to forgo the carryback period and just carry forward an NOL.
Exercise 2-30 (LO. 3)Crane and Loon Corporations, two unrelated C corporations, have the following transactions for 2015CraneLoonGross income from operations$180,000$300,000Expenses from operations255,000310,000a.What are Gold's marginal tax rates for the carryback years?Consider. Gold's marginal tax rate will impact the decision tob.What effect, if any, would an NOL carryback haveon the prior years' tax computations?c.What is Gold's estimated future marginal tax rate?d.What was Gold's marginal tax rate four years ago?Don't consider. Understanding the marginal tax rate from