Theodore Enterprises 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 30%. In its 2012 tax return, Theodore elected a loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2012. What was Theodore's income tax expense for 2013?

Question

Theodore Enterprises 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 30%. In its 2012 tax return, Theodore elected a loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2012. What was Theodore's income tax expense for 2013?

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The Answer of Theodore Enterprises 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 30%. In its 2012 tax return, Theodore elected a loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2012. What was Theodore's income tax expense for 2013?

Theodore Enterprises Had the Following Pretax Income (Loss) Over Its