Akeem, Who Does Not Itemize, Incurred a Net Operating Loss

question 94

Multiple Choice

Akeem, who does not itemize, incurred a net operating loss (NOL) of $50,000 in 2012.His deductions in 2012 included AMT tax preference items of $20,000, and he had no AMT adjustments.Assuming the NOL is not carried back, what is Akeem's ATNOLD carryover to 2013?

• A)$50,000.
• B)$30,000.
• C)$20,000.
• D)$40,000.
• E)None of the above.

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Definitions:

Interest Expense

This is the cost incurred by an entity for borrowed funds, usually presented as an expense on the income statement.

Operating Expense

Expenses incurred through normal business operations, such as rent, utilities, and payroll.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.