Pretax Operating Loss Sky Company reports a pretax operating loss of $50,000 in Year 3...
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Accounting
Pretax Operating Loss
Sky Company reports a pretax operating loss of $50,000 in Year 3 for both financial reporting and income tax purposes. Its reported pretax financial income and taxable income for the previous 2 years had been: Year 1: $20,000 and Year 2: $30,000. Calculate Skys income tax benefit from operating loss carryforward for Year 3. The tax rate for all years is 21%.
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