Fashion Inc. is public Corporation reported the following results for its first thrce years of operations: 2019 income (before income taxes ) 2020 loss (before income taxes) 2021 loss (before income taxes) $ 50.000 (400,000) (360,000) - 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 not likely to be realized • If fashion Inc. elects to use the carry forward provisions and not the carry back provisions, the net income (loss) to be reported for 2020 is equal to Os (360,000) $0 $ (350,000) $ (400,000)
Fashion Inc. is public Corporation reported the following results for its first thrce years of operations: 2019 income (before income taxes ) 2020 loss (before income taxes) 2021 loss (before income taxes) $ 50.000 (400,000) (360,000) - 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 not likely to be realized • If fashion Inc. elects to use the carry forward provisions and not the carry back provisions, the net income (loss) to be reported for 2020 is equal to Os (360,000) $0 $ (350,000) $ (400,000)
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
Related questions
Question
Transcribed Image Text:Fashion Inc. is public Corporation reported the following results for its first three years of
operations:
2019 income (before income taxes)
2020 loss (before income taxes)
2021 loss (before income taxes)
$ 50.000
(400,000)
(360,000)
- 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 not likely to be realized
• If fashion Inc. elects to use the carry forward provisions and not the carry back
provisions, the net income (loss) to be reported for 2020 is equal to
OS (360,000)
$0
$ (350,000)
$ (400,000)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning