Question
Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell Company had the following operating results: Year Income
Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell Company had the following operating results:
| Year | Income (loss) | Tax rate | Income tax |
| |||||||||
| 2018 |
| 40,000 |
|
|
| 25 | % |
|
| 10,000 |
| ||
| 2019 |
| 40,000 |
|
|
| 25 | % |
|
| 10,000 |
| ||
| 2020 |
| 50,000 |
|
|
| 30 | % |
|
| 15,000 |
| ||
| 2021 |
| (130,000 | ) |
|
| 30 | % |
|
| 0 |
| ||
What is the Deferred tax Asset in 2021?
A) 30000 B)90000 C)22500 D)12000
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Management Control Systems
Authors: Kenneth Merchant, Wim Van Der Stede
5th Edition
1292444134, 9781292444130
