BTW Corporation has taxable income in the current year that can be offset with an NOL from a previous year. What is the nature of the book-tax difference created by the net operating loss carryover deduction in the current year?

Question

Quizplus · Accepted Answer

The book-tax difference created by the net operating loss carryover deduction in the current year is temporary and favorable. It is temporary because the deduction will reduce taxable income in the current year but will not impact book income in the future. It is favorable because it reduces the amount of taxes owed in the current year.

BTW Corporation Has Taxable Income in the Current Year That