As of December 31, 2017, Colt Corporation has a loss carryforward of $180,000 available to offset future

Question:

As of December 31, 2017, Colt has a loss carryforward of $180,000 available to offset future taxable income. At December 31, 2017, the company believes that realization of the tax benefit related to the loss carryforward is probable. The tax rate is 35%.
Required:
What amount of the tax benefit should be reported in Colt's 2017 income statement assuming
(a) The loss carryforward arose in 2017 and
(b) The loss carryforward arose prior to 2017?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...