During its first three years of operations a company reported pre-tax book income of $1,000,000 in year 1, ($1,800,000) in year 2, and $3,000,000 in year 3. The income tax rate applicable to each of the years was 40%.Assume that there weren't any temporary differences and a valuation allowance was not necessary.What is the amount of the deferred tax asset reported in the year 2 year-end balance sheet if the company elected a loss carryback?
A. $0.
B. $720,000.
C. $400,000.
D. $320,000.
Answer: D
You might also like to view...
Usually in cases where there is a known principal, the agent has liability for, and rights under, contracts made on behalf of a principal
a. True b. False Indicate whether the statement is true or false
Bratton and Gold (2012) argue that people management has become ever more important because of _______
a. structural changes in the global economy. b. economic factors. c. governmental factors. d. cultural variations.
Mire Corporation had the following transactions involving investments in non-influential securities during the year. Prior to these transactions, Mire had never had any investments in securities. Prepare the required general journal entries to record these transactions.Feb. 16Purchased 800 shares of HM Corporation stock at $28 per share plus a $400 brokerage fee.Feb. 26Purchased 500 shares of Sugarland Co. stock at $19 per share plus a $300 brokerage fee.Mar. 2Received a $0.95 per share dividend from the HM Corporation.Mar. 28Sold 200 shares of HM Corporation stock for $31 per share less a $150 brokerage fee.Apr. 20Sold 150 shares of Sugarland Co. stock at $17 per share less a $100 brokerage fee.Apr. 30The company is preparing quarterly financial statements; prepare an adjusting entry for
the fair value adjustment on the trading securities. At April 30, the HM stock has a fair value of $30 per share, and the Sugarland stock has a fair value of $16 per share. What will be an ideal response?
What is the major cause of poorly perceived service?
a. poor after-sales services b. high expectations c. the difference between what a firm promises about a service, and what it actually delivers d. all of the above