The ice cream Company reported a pretax net operating loss of $300,000 for its year ended 20X1 for both financial reporting and for tax purposes. Ice cream will carry the operating loss forward. In 20X2. Ice Cream reported a pretax operating profit of $100,000. The tax rate for both years was 25%, and there were no other deferred tax items in either year. What was Ice Cream's income tax payable for 20X2?

 

A. $-0-

B. $5,000

C. $25,000

Answer rating: 100% (QA)

To calculate Ice Creams income tax payable for 20X2 we need to consider the operatin... View the full answer