Penny had income in the first three years of operations as follows: 2010: 400,000 in income, 25% enacted tax rate 2011: -1,000,000 in income, 30% enacted tax rate 2012: 1,680,000 in income, 40% enacted tax rate Assuming Penny opts to carryback her 2011 NOL, what is the amount of income taxes payable by Dec 31, 2012?
Penny had income in the first three years of operations as follows: 2010: 400,000 in income, 25% enacted tax rate 2011: -1,000,000 in income, 30% enacted tax rate 2012: 1,680,000 in income, 40% enacted tax rate Assuming Penny opts to carryback her 2011 NOL, what is the amount of income taxes payable by Dec 31, 2012?
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 3P
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