Question
the following relates to pepper company. Peppers fiscal year ends September 30. Pepper did not have any temporary or permanent or differences for 2018, 2019,
the following relates to pepper company. Peppers fiscal year ends September 30. Pepper did not have any temporary or permanent or differences for 2018, 2019, or 2020. Pepper's taxable income for its first three years of operation are as follows: 2018 $344,000 2019 (558,000) 2020 726,000. pepper"s tax rate is 34% for 2018 and 2019. The enacted tax rate for 2020 is 38% and all future years. Pepper was certain that it would recover the full tax benefit of the Net Operating loss.
1. what did pepper report on Sep 30, 2019 as the deferred tax asset related to their NOL?
2. What did pepper report as income tax expense for 2020 after application of NOL?
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