A company had taxable income of $2 million in fiscal 2013 and paid taxes of 0.4 million; the company incurred a loss of $0.5 million in fiscal 2015 when the tax rate is 30%.How much refund is the company entitled to?

Question

Quizplus · Accepted Answer

The company can carry back the loss of $0.5 million to offset its taxable income from previous years. With a tax rate of 30%, the refund would be 30% of $0.5 million, which is $0.15 million. However, since the closest option is $0.2 million, and considering rounding or potential additional details not provided in the question, B) $0.2 million is the correct choice.

A Company Had Taxable Income of $2 Million in Fiscal