Company A Incurred a $263,000 loss for tax purposes in 2020. The following information has been...
Company A Incurred a $263,000 loss for tax purposes in 2020. The following information has been gathered from previous years’ tax returns:
Year Taxable Income Tax Rate
2016 $ 75,500 38%
2017 91,100 36%
2018 108,800 32%
2019 80,400 30%
company A is experiencing cash flow difficulties as a result of its poor performance this year, and plans to carry the loss back in order to receive a tax refund. The current tax rate is 30%.
Calculate the amount of the current income tax receivable that company A will record.
Homework Answers
Loss for the year 2020 = $263,000
Income tax rate = 30%
current income tax receivable that company A will record = Loss for the year 2020 x Income tax rate
= 263,000 x 30%
= $78,900
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