[10] Zamboogini Inc., reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:

Year Accounting Income/(Loss) Tax Rate

2016 $ (90,000) 25%

2017 60,000 25%

2018 (?) 30%

2019 360,000 30%

2020 30%

The tax rates listed were all enacted and known at by the beginning of 2016. Assume all losses prior to that of 2018 have been fully recovered within the carryback period. The policy of the company is to first fully recover all losses through the carryback period and to carryforward any remaining balance. Zamboogini reports under ASPE.

Late in December, 2018, the company rented a warehouse for the years 2019-2020 and received a payment of $96,000 in advance. This amount was treated as taxable in the year received. There were no other timing differences in any of the other years. In 2018, the company recorded an asset for $88,200 to recognize this loss carry forward after carrying back the maximum loss possible to 2017.

Determine the amount of the taxable loss and the accounting loss for 2018.

Select one:

a.

taxable loss $354,000; and accounting loss $382,800

b.

taxable loss $354,000; and accounting loss $450,000

c.

taxable loss $309,000; and accounting loss $405,000

d.

taxable loss $309,000; and accounting loss $337,800

e.

none of the above numbers but another number

10] Zamboogini Inc., reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:

Year Accounting Income/(Loss) Tax Rate

2016 $ (90,000) 25%

2017 60,000 25%

2018 (?) 30%

2019 360,000 30%

2020 30%

The tax rates listed were all enacted and known at by the beginning of 2016. Assume all losses prior to that of 2018 have been fully recovered within the carryback period. The policy of the company is to first fully recover all losses through the carryback period and to carryforward any remaining balance. Zamboogini reports under ASPE.

Late in December, 2018, the company rented a warehouse for the years 2019-2020 and received a payment of $96,000 in advance. This amount was treated as taxable in the year received. There were no other timing differences in any of the other years. In 2018, the company recorded an asset for $88,200 to recognize this loss carry forward after carrying back the maximum loss possible to 2017.

Determine the amount of the taxable loss and the accounting loss for 2018.

Select one:

a.

taxable loss $354,000; and accounting loss $382,800

b.

taxable loss $354,000; and accounting loss $450,000

c.

taxable loss $309,000; and accounting loss $405,000

d.

taxable loss $309,000; and accounting loss $337,800

e.

none of the above numbers but another number