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Tamarisk Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 25 % 2015 2016 $67,200 (98,000) 126,000
Tamarisk Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 25 % 2015 2016 $67,200 (98,000) 126,000 20 % 20 % 2017 2018 42,000 20 % 2019 20 % 2020 147,000 (84,000) 178,000 25 % 25 % 2021 Pretax financial income (loss) and taxable income (loss) were the same for all years since Tamarisk has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Tamarisk Corporation Income Statement (Partial) For the Year Ended December 31, 2016 Operating Loss before Income Taxes $ 98000 Income Tax Benefit Deferred 36400 Net Income /(Loss) $ eTextbook and Media List of Accounts
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