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As of December 31, 2017, Colt Corporation has a loss carryforward of $180,000 available to offset future taxable income. At December 31, 2017, the company
As of December 31, 2017, Colt Corporation 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%.
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What amount of the tax benefit should be reported in Colts 2017 income statement assuming (a) the loss carryforward arose in 2017 and (b) the loss carryforward arose prior to 2017?
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