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AC507-3: Assess the Federal net operating loss rules.

Scenario: The Smith Company, a C Corporation, in
2021 has a loss of $200,000. During 2022, 2023, 2024, and 2025, the
company experienced the following:

• 2022 – income of $120,000
• 2023 – income of $50,000
• 2024 – loss of $20,000
• 2025 – income of $200,000

Determine the taxes paid/refunded in each year, 2021, 2022, 2023,
2024, and 2025. Assume the income tax rate for all years is a 21% flat
tax rate on all income levels.