How would your answer to BE17 20 change if Year 1 income were equal to $100,000 Data from BE17 20 W Pickett Fence Company incurred a net loss for Year 3 The firm does not have any book tax differences We preset the results of operations for the first 3 years of the company s operations Future tax rates are expected to be 35 W Pickett always elects the carryback carryforward option, There are no uncertainties regarding realization of future tax benefits Income (Loss Year before Tax Tax Rate ( ) $300 000 40 200 000 35 35 (450,000)

Question: How would your answer to BE17-20 change if Year 1 income were equal to $100,000? Data from BE17-20 W. Pickett Fence Company incurred a net

How would your answer to BE17-20 change if Year 1 income were equal to $100,000?

Data from BE17-20

W. Pickett Fence Company incurred a net loss for Year 3. The firm does not have any book-tax differences. We preset the results of operations for the first 3 years of the company"s operations:

Income (Loss! Year before Tax Tax Rate (%) $300 000 40% 200 000 35 35 (450,000)

Future tax rates are expected to be 35%. W. Pickett always elects the carryback / carryforward option, There are no uncertainties regarding realization of future tax benefits.

Income (Loss! Year before Tax Tax Rate (%) $300 000 40% 200 000 35 35 (450,000)

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