Question
Consider the following data for Gordon, Inc. Pretax financial income/(loss) and taxable income/(loss) are the same in all years, and all tax rates are enacted
Consider the following data for Gordon, Inc. Pretax financial income/(loss) and taxable income/(loss) are the same in all years, and all tax rates are enacted as of the beginning of 2023. Gordon uses net operating loss carryforwards whenever possible.
| Year | Income/(loss) | Tax rate |
| 2023 | ($251,000) | 20% |
| 2024 | $169,000 | 20% |
| 2025 | $168,000 | 19% |
In 2025, Gordon records "Income taxes payable" in the amount of
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Fundamentals Of Accounting And Financial Analysis
Authors: Anil Chowdhury
1st Edition
9788131702024, 9788131776070
