Peck Co. reports a taxable and pretax financial loss of $400,000 for 2009. Peck's taxable and pretax financial income and tax rates for the last two years were:
The amount that Peck should report as an income tax refund receivable in 2009, assuming that it uses the carryback provisions and that the tax rate is 40% in 2009, is

Question

Peck Co. reports a taxable and pretax financial loss of $400,000 for 2009. Peck's taxable and pretax financial income and tax rates for the last two years were:
 The amount that Peck should report as an income tax refund receivable in 2009, assuming that it uses the carryback provisions and that the tax rate is 40% in 2009, is

Quizplus · Accepted Answer

($400,000 × 30%) = $120,000.

Peck Co Reports a Taxable and Pretax Financial Loss of $400,000