Clinton Corp.had the following pretax income (loss)over its first three years of operations:

For each year there were no deferred income taxes and the tax rate was 40%.For its 2015 tax return,Clinton did not elect a net operating loss carryback.No valuation account was deemed necessary for the deferred tax asset as of December 31,2015.What was Clinton's income tax expense in 2016?

Question

Clinton Corp.had the following pretax income (loss)over its first three years of operations:

For each year there were no deferred income taxes and the tax rate was 40%.For its 2015 tax return,Clinton did not elect a net operating loss carryback.No valuation account was deemed necessary for the deferred tax asset as of December 31,2015.What was Clinton's income tax expense in 2016?

Quizplus · Accepted Answer

The Answer of Clinton Corp.had the following pretax income (loss)over its first three years of operations:

For each year there were no deferred income taxes and the tax rate was 40%.For its 2015 tax return,Clinton did not elect a net operating loss carryback.No valuation account was deemed necessary for the deferred tax asset as of December 31,2015.What was Clinton's income tax expense in 2016?