Elizabeth has the following items for the current year: In calculating Elizabeth's net operating loss,and with respect to the above amounts only,what amount must be added back to taxable income (loss)?

Question

Elizabeth has the following items for the current year:  In calculating Elizabeth's net operating loss,and with respect to the above amounts only,what amount must be added back to taxable income (loss)?

Quizplus · Accepted Answer

The only amount that must be added back to taxable income (loss) when calculating Elizabeth's net operating loss is the $2,000 of tax-exempt interest income (line 8b on Form 1040). Therefore, the correct answer is C ($2,000).

Elizabeth Has the Following Items for the Current Year