Question: AFE Corp. is currently in the sixth year of its existence (2016). In 2011 2015, it reported the following income and (losses) (before net operating loss carryovers or carrybacks). 2011: ($70,000) 2012: (30,000) 2013: 60,000 2014: 140,000 2015: (25,000) 2016: 300,000
Assuming that AFE elects to not carry back NOLs, what was AFE's year 2014 taxable income?
If AFE does not elect to forgo any NOL carrybacks, what is its 2016 taxable income after the NOL deduction?
If MWC always elects to forgo NOL carrybacks, what is its 2016 taxable income after the NOL deduction?
What is its 2016 book-tax difference associated with its NOL? Is it favorable or unfavorable? Is it permanent or temporary?