When the NOL Allowance Rate is set to 50% and Base NOL Allowance is set to 100,000, the NOL Reclass is the sum of 50% of the Federal Taxable Income, 50% of the Base NOL Allowance (100,000), NOL Deferred Only (0), and NOL Balance Sheet Only (0).

[(2,048,000 * .50) + (100,000 * .50)] + 0<DO> + 0<Bal O> = -(1,074,000) <NOL Reclass>

 

If the NOL Reclass is added to the Federal Taxable Income (Pre-NOL), the Federal Taxable Income (Post-NOL) is 974,000.

2,048,000<TI Pre-NOL> + -1,074,000 <NOL Reclass> = 974,000 <TI Post-NOL>

 

NOL Ending Balance

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

5,000,000 <BBal> + -1,074,000<NOL Reclass> + 0 <DO> + 0<Bal O> = 3,926,000<EB>