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Nickerson Corporation began operations in 2007. There have been no permanent or temporary differences to account for since the inception of the business. The following
Nickerson Corporation began operations in 2007. There have been no permanent or temporary differences to account for since the inception of the business. The following data are available: Year 2009 2010 2011 2012 Enacted Tax Rate 45% 40% 35% 30% Taxable Income $750,000 900,000 Taxes Paid $337,500 360,000 In 2011, Nickerson had an operating loss of $930,000. What amount of income tax benefits should be reported on the 2011 income statement due to this loss? A) $409,500 B) $373,500 C) $372,000 D) $279,000
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