JMR Corporation suffered a loss in 2013.As a result,the Corporation has a $87,000 accumulated tax loss carry forward at the tax rate of 40%.The benefit was recorded in the accounts as JMR believed it was more likely than not to be realized.In 2014 the tax rate goes up to 45% and JMR has not yet used the benefit.Which of the following statements is true?
A) No change to the accounts is necessary
B) Income tax expense should be increased by $1,740
C) Deferred income tax asset-benefit should be increased by $1,740
D) Income tax expense should be decreased by $4,350

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The Answer of JMR Corporation suffered a loss in 2013.As a result,the Corporation has a $87,000 accumulated tax loss carry forward at the tax rate of 40%.The benefit was recorded in the accounts as JMR believed it was more likely than not to be realized.In 2014 the tax rate goes up to 45% and JMR has not yet used the benefit.Which of the following statements is true?
A) No change to the accounts is necessary
B) Income tax expense should be increased by $1,740
C) Deferred income tax asset-benefit should be increased by $1,740
D) Income tax expense should be decreased by $4,350

JMR Corporation Suffered a Loss in 2013