2. in DEC 11 Q 1, at the page of 16. the answer process the W5. how to get the number of 38470? and I think that in the second year, the taxable profit should be 7 not 0?
There was a loss in the first year of 22201. This loss is used to reduce the profit of 7 in the second year to zero, and the remainder of the loss (22194) then reduces the third years taxable profit.