| ACC221 Lesson 5 Case Study Template |
| Name: |
| MEID: |
| Part 1 |
| Intructions: |
| Use the data in the table, to answer the question below. |
| During 2021, Catalina, a single individual, reported the following taxable income: |
| Catalina's Income |
| Gross income from business | $200,000 |
| Less: Business expenses | 250,000 | ($50,000) |
| Plus: Interest income | | 2,000 |
| Dividend income | | 1,000 |
| AGI | | ($47,000) |
| Less: Greater of itemized deductions or standard deduction |
| Casualty loss from a federally declared disaster area | $1,500 |
| Taxes | 5,500 |
| Interest expense | 5,500 |
| Total itemized deductions | $13,000 |
| | | $13,000 |
| Taxable income | | ($60,000) |
| Compute the net operating loss (NOL) based on the data provided in the table. Be sure to show your work. |
| Answer: |
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ACC221_L5_Template_v12.xlsx
