ACC 331 Fall 2016
Chapter 6-4: Net Operating Losses
Net Operating Losses (NOLs)
NOLs permit tax losses (i.e. negative taxable income) in one year to offset taxable
income in other years.
If the Code did not provide a deduction for NOLs, the re
Answers to Assignment 5-B
1. ALLOCATIONS OF SUPPORT COSTS
Legal to division A: ($2,000,000)(400/1,000) = $8
Answers to Assignment 2
1) Suggested response. Answer presentation may vary.
(1) Yes. A simple, direct accounting system is possible and advisable for a new, small service-oriented firm.
The system should allow for growth in