Question
I NEED CALCULATION/PROCESSES TO UNDERSTAND IT. In 2018, its first year of operations, Company A has a $500,000 net operating loss when the tax rate
I NEED CALCULATION/PROCESSES TO UNDERSTAND IT.
In 2018, its first year of operations, Company A has a $500,000 net operating loss when the tax rate is 35%.
Instructions:
- Assume the management of Company A thinks that it is more likely than not that the loss carryforward will not be realized in the near future because it is a new company. What are the entries in 2018 to record the tax loss carryforward?
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- In 2019, Company A has $50,000 taxable income and the tax rate remains 35%. What entries would be made in 2019 to record the current and deferred income taxes and to recognize the loss carryforward?
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- If this had not been a new company, how many years could the company carryback the loss?
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Ethics Management Auditing And Developing The Ethical Content Of Organizations
Authors: S.P. Kaptein
1st Edition
0792350960, 978-0792350965
