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In its first three years of operations Carlos Productions, a musical production company, reported the following operating income (loss) amounts: 2019$450,0002020(1,000,000)20211,800,000 There were no other
In its first three years of operations Carlos Productions, a musical production company, reported the following operating income (loss) amounts:
2019$450,0002020(1,000,000)20211,800,000
There were no other deferred income tax amounts in any year. The enacted income tax rate was 25% in 2020 and 30% thereafter. In its 2020 balance sheet, what amount of deferred tax asset should Carlos report relevant to the NOL? (It concludes that no valuation allowance is necessary.)
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