Wheaton Inc. reported the following results for its first three years of operations: 2019 Income (before income taxes) $ 40,000 2020 Loss (before income taxes) (300,000) 2021 Income (before income taxes) 400,000 There were no permanent or reversible differences during these three years. Assume an income tax rate of 30% for 2019 and 2020, and 40% for 2021, and that any tax loss carryforward is more likely than not to be realized. If Wheaton elects to use the carryback provisions, what after tax net income (loss) is reported for 2020? Select one: a. $(300,000). b. $(196,000). c. $(184,000). d. $0. e. none of the above.
Wheaton Inc. reported the following results for its first three years of operations: 2019 Income (before income taxes) $ 40,000 2020 Loss (before income taxes) (300,000) 2021 Income (before income taxes) 400,000 There were no permanent or reversible differences during these three years. Assume an income tax rate of 30% for 2019 and 2020, and 40% for 2021, and that any tax loss carryforward is more likely than not to be realized. If Wheaton elects to use the carryback provisions, what after tax net income (loss) is reported for 2020? Select one: a. $(300,000). b. $(196,000). c. $(184,000). d. $0. e. none of the above.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Question
Wheaton Inc. reported the following results for its first three years of operations:
|
2019 |
Income (before income taxes) |
$ 40,000 |
|
2020 |
Loss (before income taxes) |
(300,000) |
|
2021 |
Income (before income taxes) |
400,000 |
There were no permanent or reversible differences during these three years. Assume an income tax rate of 30% for 2019 and 2020, and 40% for 2021, and that any tax loss carryforward is more likely than not to be realized. If Wheaton elects to use the carryback provisions, what after tax net income (loss) is reported for 2020?
Select one:
a.
$(300,000).
b.
$(196,000).
c.
$(184,000).
d.
$0.
e.
none of the above.
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