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 2012 tax return, Clinton did not elect a loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2012. What was Clinton's income tax expense in 2013?

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 2012 tax return, Clinton did not elect a loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2012. What was Clinton's income tax expense in 2013?

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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 2012 tax return, Clinton did not elect a loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2012. What was Clinton's income tax expense in 2013?