B is corrent. The requirement is to determine the NOL for 2013 given that deductions in the tax return exceed gross income by $75,000. In computing the NOL for 2013, the DRD of $6,600 would be fully allowed, but the $13,400 NOL deduction (carryover from 2012) would not be allowed. $75,000 — $13,400 = $61,600.
A is incorrect. The NOL carryover is not deductible in computing the current years’ NOL.
C is incorrect. You must add back the NOL carryover from 2012, but the DRD is allowed and is not added back.
D is incorrect. The DRD is allowed in computing NOL.
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