After several years of recognizing profits, Westly Inc. experiences a net operating loss in 2020 of $25,000. The company applied the net operating loss carryfoward method. In 2021, Westly Inc. rebounds with earnings before taxes of $40,000. Westly's tax rate for all years is 25% and the company determines that no valuation allowance for any deferred tax assets is required. Assuming no deferred income taxes before 2020, what amount should Westly Inc. recognize as income tax expense in 2021, ?

Answer rating: 100% (QA)

To calculate the income tax expense for Westly Inc in 2021 we need to c... View the full answer