Colombe Properties Corporation reported the following results for its first three years of operations: 2019 income (before
Fantastic news! We've Found the answer you've been seeking!
Question:
Colombe Properties Corporation reported the following results for its first three years of operations:
2019 income (before income taxes) $40,000
2020 loss (before income taxes) (360,000)
2021 income (before income taxes) 400,000
There were no permanent or reversible differences during these three years. Assume an income tax rate of 30% for 2019 and 2020, and 40% for 2021, and that any deferred tax asset recognized is more likely than not to be realized. If Colombe Properties elects to use the carry forward provisions and not the carryback provisions, what income (loss) is reported for 2020?
a) $(360,000)
b) $(232,000)
c) $(216,000)
d) $0
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date: