For three consecutive years, 2009-2011, Twins Corporation has reported income before taxes of $100,000 for both financial reporting purposes and tax reporting purposes. During this time, Twins income tax rates were as follows:

In 2012, Twins' tax rate changed to 35 percent. Also in 2012, the company reported a loss for both financial reporting and tax reporting purposes of $100,000. Assuming the company uses the carryback provisions, the amount Twins' should report as an income tax refund receivable in 2012 is

Question

For three consecutive years, 2009-2011, Twins Corporation has reported income before taxes of $100,000 for both financial reporting purposes and tax reporting purposes. During this time, Twins income tax rates were as follows:

In 2012, Twins' tax rate changed to 35 percent. Also in 2012, the company reported a loss for both financial reporting and tax reporting purposes of $100,000. Assuming the company uses the carryback provisions, the amount Twins' should report as an income tax refund receivable in 2012 is

Quizplus · Accepted Answer

The Answer of For three consecutive years, 2009-2011, Twins Corporation has reported income before taxes of $100,000 for both financial reporting purposes and tax reporting purposes. During this time, Twins income tax rates were as follows:

In 2012, Twins' tax rate changed to 35 percent. Also in 2012, the company reported a loss for both financial reporting and tax reporting purposes of $100,000. Assuming the company uses the carryback provisions, the amount Twins' should report as an income tax refund receivable in 2012 is

For Three Consecutive Years, 2009-2011, Twins Corporation Has Reported Income