Hoku Corporation (a C corporation) had the following history of income and loss:
$$\begin{array} { c c }
\text { Year } & \text { Income (Loss) } \
2009 & \$ 40,000 \
2010 & \$ 70,000 \
2011 & ( \$ 10,000 )
\end{array}$$
How much of a tax refund can Hoku Corporation receive by carrying back its 2011 loss?
A) $1,500
B) $2,500
C) $3,500
D) None; it cannot carry its loss back

Question

Hoku Corporation (a C corporation) had the following history of income and loss:
$$\begin{array} { c c } 
\text { Year } & \text { Income (Loss) } \
2009 & \$ 40,000 \
2010 & \$ 70,000 \
2011 & ( \$ 10,000 )
\end{array}$$
How much of a tax refund can Hoku Corporation receive by carrying back its 2011 loss?
A) $1,500
B) $2,500
C) $3,500
D) None; it cannot carry its loss back

Quizplus · Accepted Answer

The Answer of Hoku Corporation (a C corporation) had the following history of income and loss:
$$\begin{array} { c c } 
\text { Year } & \text { Income (Loss) } \
2009 & \$ 40,000 \
2010 & \$ 70,000 \
2011 & ( \$ 10,000 )
\end{array}$$
How much of a tax refund can Hoku Corporation receive by carrying back its 2011 loss?
A) $1,500
B) $2,500
C) $3,500
D) None; it cannot carry its loss back

Hoku Corporation (A C Corporation) Had the Following History of Income