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 21%. Assume that there weren't any temporary differences and a valuation allowance was not necessary. What amount of income tax expense was reported by the company in year 3 with respect to the net operating loss carryforward? Multiple Choice $880,000 $630,000 $ 378,000 $ 252,000

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 21%. Assume that there weren't any temporary differences and a valuation allowance was not necessary. What amount of income tax expense was reported by the company in year 3 with respect to the net operating loss carryforward? Multiple Choice $880,000 $630,000 $ 378,000 $ 252,000

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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