In 2011, Eric Corporation reported $90,000 net income before income taxes. The income tax rate for 2011

Question:

In 2011, Eric Corporation reported $90,000 net income before income taxes. The income tax rate for 2011 was 30 percent. Eric had an unused $60,000 net operating loss carry-forward arising in 2010 when the tax rate was 35 percent. The income tax expense Eric would report for 2011 would be

a. $6,000.

b. $9,000.

c. $10,500.

d. $27,000.

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...