In 2020, its first year of operations, ABC reported a net operating loss of $327,761...
70.2K
Verified Solution
Link Copied!
Question
Accounting
In 2020, its first year of operations, ABC reported a net operating loss of $327,761 and consequently recognized a deferred tax asset (DTA) for the same year. The following year, 2021, the business reported taxable income of $192,535 before any net operating loss from prior periods. The company's tax rate was 0.26 for both years. Assuming that the company used all the benefit allowed for the 2020 loss according to the new tax reform, by how much will the Deferred Tax Asset account be adjusted in 2021? a. 40047.28 b. 50059.10 c. 10011.82 d. 85217.86
In 2020, its first year of operations, ABC reported a net operating loss of $327,761 and consequently recognized a deferred tax asset (DTA) for the same year. The following year, 2021, the business reported taxable income of $192,535 before any net operating loss from prior periods. The company's tax rate was 0.26 for both years.
Assuming that the company used all the benefit allowed for the 2020 loss according to the new tax reform, by how much will the Deferred Tax Asset account be adjusted in 2021?
a.
40047.28
b.
50059.10
c.
10011.82
d.
85217.86
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.