Before considering a net operating loss carryforward of $82 million, Fama Corporation reported $100 million of pretax accounting and taxable income in the current year. The income tax rate for all previous years was 31%. On January 1 of the current year, a new tax law was enacted, reducing the rate to 27% effective immediately. Fama's income tax payable for the current year would be: 

Multiple Choice

• $56 million.

• $5 million.

• $6 million.

• $7 million.

Answer rating: 100% (QA)

The correct option is B Income tax payable ... View the full answer