W, an unaffiliated first-year corporation, had taxable income for 2011 of $30,000.In 2012, the X-Y affiliated group purchased all the stock of W and filed a consolidated return for that year showing the following loss: $$\begin{array} { l l }
\text { Company }& \text { Consolidated Taxable Income (Lass) } \
\mathrm { W } & \$ ( 200,000 ) \
\mathrm { X } & 450,000 \
\mathrm { Y } & ( 400,000 ) \
\text { Total } & \$ ( 150,000 )
\end{array}$$ Compute W's loss carryover to 2013.

Question

W, an unaffiliated first-year corporation, had taxable income for 2011 of $30,000.In 2012, the X-Y affiliated group purchased all the stock of W and filed a consolidated return for that year showing the following loss: $$\begin{array} { l l } 
 \text { Company }& \text { Consolidated Taxable Income (Lass) } \
\mathrm { W } & \$ ( 200,000 ) \
\mathrm { X } & 450,000 \
\mathrm { Y } & ( 400,000 ) \
\text { Total } & \$ ( 150,000 )
\end{array}$$ Compute W's loss carryover to 2013.

Quizplus · Accepted Answer

W's loss carryover to 2013 is $20,000, computed as follows:2011 taxable income $30,000Less: 2012 consolidated loss (200,000)Loss carryover to 2013 $20,000

W, an Unaffiliated First-Year Corporation, Had Taxable Income for 2011