Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations: $\begin{array}{rr}
2017 & 350,000 \
2018 & (600,000) \
2019 & 700,000
\end{array}$ Puritan's tax rate is 40% for all years. Puritan elected a loss carryback.
-As of December 31, 2018. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback.
What would be the net loss in 2018 reported in Puritan's income statement?

Question

Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations: $\begin{array}{rr}
2017 & 350,000 \
2018 & (600,000) \
2019 & 700,000
\end{array}$ Puritan's tax rate is 40% for all years. Puritan elected a loss carryback. 
-As of December 31, 2018. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback.
What would be the net loss in 2018 reported in Puritan's income statement?

Quizplus · Accepted Answer

11ea937b_35c5_622b_a419_2feea414ad6f_TB2599_00

Puritan Corp 2017350,0002018(600,000)2019700,000\begin{array}{rr}2017 & 350,000 \\2018 & (600,000) \\2019 & 700,000\end{array}201720182019​350,000(600,000)700,000​

Puritan Corp $\begin{array}{rr}2017 & 350,000 \\2018 & (600,000) \\2019 & 700,000\end{array}$