Scenario 2

When the NOL Allowance Rate is set to 50% and the Base NOL Allowance is set to 0, the NOL Reclass is the sum of 50% of the Federal Taxable Income, NOL Deferred Only (0), and NOL Balance Sheet Only (0).

(2,048,000 <TI Pre-NOL> * 50%<NOL Allowance Rate>) + 0<DO> + 0<Bal O> = -(1,024,000)<NOL Reclass>

If the NOL Reclass is added to the Federal Taxable Income (Pre-NOL), the Federal Taxable Income (Post-NOL) is 1,024,000.

2,048,000<TI Pre-NOL> + -1,024,000 <NOL Reclass> = 1,024,000 <TI Post-NOL>

NOL Ending Balance

(Beginning Bal + Deferred Only + Balance Sheet Only) + (NOL Reclass) = NOL End Bal)

5,000,000 <BBal> + -1,024,000 <NOL Reclass> + 0 <DO> + 0<Bal O> = 3,976,000<EB>

Note: To access the report, select the Reporting area, Dataset, and Report Level.  Then, in the navigator select Tax Provision and click Run.  View Detail.  On the report, select the View Detail hyperlink.