A company reports the following pretax income (loss) for both financial reporting purposes and tax purposes.YearPretax Income (Loss)Tax Rate2018$138,00018%201981,000182020(258,700)212021303,20021Assuming that the company can carryforward its 2020 net operating loss, what is the amount of deferred tax asset the company would report at the end of 2020 related to this loss carryforward?

Amount of deferred tax assets to be reported at the end of 2002 related to loss carry forward =…

Answered: A company reports the following pretax…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company reports the following pretax income (loss) for both financial reporting purposes and tax purposes.

Year	Pretax Income (Loss)	Tax Rate
2018	$138,000	18%
2019	81,000	18
2020	(258,700)	21
2021	303,200	21

Assuming that the company can carryforward its 2020 net operating loss, what is the amount of deferred tax asset the company would report at the end of 2020 related to this loss carryforward?

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