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Mason Inc. reports a taxable and financial loss of $1,950,000 for 2008. Its pretax financial income for the last two years was as follows: 2006
Mason Inc. reports a taxable and financial loss of $1,950,000 for 2008. Its pretax financial income for the last two years was as follows:
2006 $900,000
2007 1,200,000
Assuming that Mason Inc. uses the carryforward provisions and that the tax rate is 25% for 2008 and 30% for all future periods affected, the amount that it reports as a net loss for financial reporting purposes in 2008 is
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$1,365,000 loss.
$1,950,000 loss.
$585,000 loss.
$ -0-.
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