Black Company reported a taxable loss of $80,000 in 20X3, its first year of operations, and...
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Black Company reported a taxable loss of $80,000 in 20X3, its first year of operations, and taxabie income of $80,000 in 20X4. Black had no temporary or permanent differences in either 20X3 or 20X4. At the end of 20X3, Black decided that no valuation allowance was necessary. Assuming a tax rate of 40%, Black should report total income tax expense (benefit) of: ($32,000) in 20X3 and $0 in 20X4. ($32,000) in 20X3 and $32,000 in 20X4. $O in 20X3 and $0 in 20X4. D. $32,000 in 20X3 and ($32,000) in 20X4. Black Company reported a taxable loss of $80,000 in 20X3, its first year of operations, and taxabie income of $80,000 in 20X4. Black had no temporary or permanent differences in either 20X3 or 20X4. At the end of 20X3, Black decided that no valuation allowance was necessary. Assuming a tax rate of 40%, Black should report total income tax expense (benefit) of: ($32,000) in 20X3 and $0 in 20X4. ($32,000) in 20X3 and $32,000 in 20X4. $O in 20X3 and $0 in 20X4. D. $32,000 in 20X3 and ($32,000) in 20X4.
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Black company had a taxable loss of 80000 in 20X3 and a taxabl... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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