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 amount of income tax expense was reported in year 3 if the company elected a loss carryback?
A. $ 480,000
B. $ 880,000
C. $ 400,000
D. $1,200,000
Answer: D
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Moreland Corporation manufactures bells and whistles. In June, 6,00 . bells were completed on Job Order No. BX46 . On final inspection, 400 bells were rejected and transferred to the spoiled goods inventory to be sold at $.50 each. Costs recorded on Job Order No. BX46 follow: Direct materials $2,400 Direct labor 2,100 Factory overhead 1,200 Prepare the journal entries to record the following:
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Indicate whether the statement is true or false