The Kelso Company had the following operating results:
What is the income tax refund receivable?

Question

The Kelso Company had the following operating results: 
What is the income tax refund receivable?

Quizplus · Accepted Answer

The income tax refund receivable can be calculated by multiplying the taxable income by the tax rate and then subtracting the total tax expense. 
Taxable income = $500,000 - $80,000 - $70,000 = $350,000
Tax rate = 30%
Total tax expense = $100,000 + $20,000 = $120,000
Income tax refund receivable = ($350,000 x 30%) - $120,000 = $19,500

The Kelso Company Had the Following Operating Results