Tub Stickers Inc (TSI) experienced its first fiscal Net Loss in its five year history. The TSI Management Team has hired you to help them with some questions they have on how to handle the Net Loss. TSI Accounting Net Income (Loss) from 2013 to 2017 are as follows: Year Accounting income (loss) Tax rate 2013 70000 25% 2014 25000 25% 2015 60000 25% 2016 80000 30% 2017 210000 35% Accounting Income (Loss) and Taxable Income (Loss) were the same for all years. TSI follows IFRS and its Management Team expects the Net Loss in 2017 to be a one-time thing. Future tax rates are expected to be 30%. TSIs Management Team is not sure if they should carry-back or carry-forward the loss. They have asked you to answer the following questions

1. In your opinion, should TSI maximize the carry-back provision where possible or simply carry-forward the loss for future Net Incomes? It is expected that you have at least three valid reasons for your decision.

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