Question
Bramble Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $48,960 25 % 2016 (71,400 )
Bramble Corporation has pretax financial income (or loss) from 2015 through 2021 as follows.
Income (Loss) | Tax Rate | |||||
2015 | $48,960 | 25 | % | |||
2016 | (71,400 | ) | 20 | % | ||
2017 | 91,800 | 20 | % | |||
2018 | 30,600 | 20 | % | |||
2019 | 107,100 | 20 | % | |||
2020 | (61,200 | ) | 25 | % | ||
2021 | 132,400 | 25 | % |
Pretax financial income (loss) and taxable income (loss) were the same for all years since Bramble has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
How should the income tax expense section of the income statement for 2017 appear? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Income Statement (Partial) For the Year Ended December 31, 2017 Income before Income Taxes 91800 Income Tax Expense Income Tax Benefit Due to Loss Carryback $ Income Tax Benefit Due to Loss Carryforward Net Income /(Loss) $Step by Step Solution
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