Longhorn Corporation reported a loss for both financial reporting purposes and tax reporting purposes of $231,000 in 2014.For financial reporting purposes,Longhorn reported income before taxes for years 2011-2013 as listed below: Assuming Longhorn's tax rate is 30 percent in all periods,and that the company uses the carryback provisions,what amount should appear in Longhorn's statements for financial reporting purposes as a net loss in 2014?

Question

Longhorn Corporation reported a loss for both financial reporting purposes and tax reporting purposes of $231,000 in 2014.For financial reporting purposes,Longhorn reported income before taxes for years 2011-2013 as listed below:  Assuming Longhorn's tax rate is 30 percent in all periods,and that the company uses the carryback provisions,what amount should appear in Longhorn's statements for financial reporting purposes as a net loss in 2014?

Quizplus · Accepted Answer

The Answer of Longhorn Corporation reported a loss for both financial reporting purposes and tax reporting purposes of $231,000 in 2014.For financial reporting purposes,Longhorn reported income before taxes for years 2011-2013 as listed below:  Assuming Longhorn's tax rate is 30 percent in all periods,and that the company uses the carryback provisions,what amount should appear in Longhorn's statements for financial reporting purposes as a net loss in 2014?

Longhorn Corporation Reported a Loss for Both Financial Reporting Purposes