Ladow Inc Incurred a $32,000 Net Operating Loss in 2020

question 90

Multiple Choice

Ladow Inc. incurred a $32,000 net operating loss in 2020. If Ladow's 2021 taxable income was $38,000 before NOLs, compute Ladow's 2021 NOL deduction.

• A) $0
• B) $25,600
• C) $30,400
• D) $32,000

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Definitions:

Fiduciary

A person who has a duty to act primarily for another person’s benefit.

Duty of Performance

An agent’s obligation to perform the duties specified in the agency agreement and to do so with reasonable skill and care.

Principal

The amount of money originally invested or loaned, on which basis interest and returns are calculated.

Agent

A party who has the authority to act on behalf of and bind another party.