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Bodily had an unused $126.000 net operating carryforward from 2015 when the in 2018. Bodily Corporation reported $260.000 pre
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Answer #1

Solution:

Bodly's income tax payable for 2018 = (Pretax income - set off of 2016 loss) * Tax rate for 2018

= ($260,000 - $126,000) * 26%

= $34,840

Hence last option is correct.

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