Question
The Carter Company's taxable income and income tax payments are shown below for 2011 through 2014: Year Taxable Income Tax Payment 2011 $10,000 $1500 2012
The Carter Company's taxable income and income tax payments are shown below for 2011 through 2014:
Year | Taxable Income | Tax Payment |
2011 | $10,000 | $1500 |
2012 | 5,000 | 750 |
2013 | 12,000 | 1,800 |
2014 | 8000 | 1,200 |
Assume that Carter's tax rate for all 4 years was a flat 15 percent; that is, each dollar of taxable income was taxed at 15 percent. In 2015, Carter incurred a loss of $19,000. Using corporate loss carry-back, what is Carter's adjusted tax payment for 2014?
a. $230 | |
b. $150 | |
c. $630 | |
d. $550 | |
e. $830 |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
10th Canadian Edition Volume 2
1118300858, 978-1118300855
