Tax Loss Carryforward
#9 In 2007, its first year of operations, XYZ Corp. has a $900,000 net operating loss when the tax rate is 30%. In 2008, XYZ has $360,000 taxable income and the tax rate remains 30%. Instructions Assume the management of XYZ Corp. thinks that it is more likely than not that the loss carryforward will not be realized in the