Assume that Theodore Enterprises operates in an industry for which NOL carryback is allowed. Theodore Enterprises had the following pretax income (loss) over its first three years of operations: 2019 $ 430,000 2020 (970,000 ) 2021 1,360,000 For each year there were no deferred income taxes and the tax rate was 25%. In its 2020 tax return, Theodore elected a net operating loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2020. What was Theodore's income tax expense for 2021?
Assume that Theodore Enterprises operates in an industry for which NOL carryback is allowed. Theodore Enterprises had the following pretax income (loss) over its first three years of operations: 2019 $ 430,000 2020 (970,000 ) 2021 1,360,000 For each year there were no deferred income taxes and the tax rate was 25%. In its 2020 tax return, Theodore elected a net operating loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2020. What was Theodore's income tax expense for 2021?
Chapter26: Tax Practice And Ethics
Section: Chapter Questions
Problem 32P
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Assume that Theodore Enterprises operates in an industry for which NOL carryback is allowed. Theodore Enterprises had the following pretax income (loss) over its first three years of operations:
2019 | $ | 430,000 | ||
2020 | (970,000 | ) | ||
2021 | 1,360,000 | |||
For each year there were no deferred income taxes and the tax rate was 25%. In its 2020 tax return, Theodore elected a net operating loss carryback. No valuation account was deemed necessary for the
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