In 2018, Bodily Corporation reported $300,000 pretax accounting income. The income tax rate for that year was 30%. Bodily had an unused $120,000 net operating loss carryforward from 2016 when the tax rate was 40%. Bodily's income tax payable for 2018 would be:

Question

Quizplus · Accepted Answer

($300,000 - 120,000) × 30% = $54,000. The change in tax rate does not affect the calculation of the current tax payable.

In 2018, Bodily Corporation Reported $300,000 Pretax Accounting Income