Fashion Inc. is public Corporation reported the following results for its first thrce years of operations: 2019 income (before income taxes ) 2020 loss (before income taxes) 2021 loss (before income taxes) $ 50.000 (400,000) (360,000) - 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 deferred tax asset recognized is not likely to be realized • If fashion Inc. elects to use the carry forward provisions and not the carry back provisions, the net income (loss) to be reported for 2020 is equal to Os (360,000) $0 $ (350,000) $ (400,000)

Fashion Inc. is public Corporation reported the following results for its first thrce years of operations: 2019 income (before income taxes ) 2020 loss (before income taxes) 2021 loss (before income taxes) $ 50.000 (400,000) (360,000) - 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 deferred tax asset recognized is not likely to be realized • If fashion Inc. elects to use the carry forward provisions and not the carry back provisions, the net income (loss) to be reported for 2020 is equal to Os (360,000) $0 $ (350,000) $ (400,000)

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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