Estimated Pre Tax Book/Taxable Income for 2018 (before unusual/infrequent items) $8,000 Effective Tax Rate 21% Q2- Loss
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Question:
Estimated Pre Tax Book/Taxable Income for 2018 (before unusual/infrequent items) $8,000
Effective Tax Rate 21%
Q2- Loss of foreign manufacturing plant due to tornado. The loss is in a jurisdiction where the loss cannot be utilized (subject to a VA) $(4,800)
Q3- Gain on Investment subject to a put option of $5,400. This gain will allow the utilization of a capital loss carryforward subject to a valuation allowance.
Adjusted Income by Quarter:
Q1 $2,100
Q2 $(3,600)
Q3 $5,800
Q4 $4,300
Calculate the YTD tax expense and ETR, by Quarter if both items are treated as discreet and again if both items are treated as ordinary.
Related Book For
Physics for Scientists and Engineers A Strategic Approach with Modern Physics
ISBN: 978-0133942651
4th edition
Authors: Randall D. Knight
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