Park Company has no permanent or temporary differences and pays no state income tax. Park reported...
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Park Company has no permanent or temporary differences and pays no state income tax. Park reported taxable income of $50,000 in 20X1, its first year of operations. Assume the tax rate was 30% in 20X1 and 40% in 20X2 and all future years. Park reports a taxable loss in 20X2 of $40,000. If Park elects to carry back its operating loss to 20X1, what would its tax refund receivable (and current tax benefit) be? A $12,000 B $16,000 $40,000 $50,000 Park Company has no permanent or temporary differences and pays no state income tax. Park reported taxable income of $50,000 in 20X1, its first year of operations. Assume the tax rate was 30% in 20X1 and 40% in 20X2 and all future years. Park reports a taxable loss in 20X2 of $40,000. If Park elects to carry back its operating loss to 20X1, what would its tax refund receivable (and current tax benefit) be? A $12,000 B $16,000 $40,000 $50,000
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Answer The correct option is A 12000 In case Park elects to carry back its operating loss to ... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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