In the First Two Years of Operations,a Company Reports Taxable

question 77

Essay

In the first two years of operations,a company reports taxable income of $125,000 and $65,000,respectively.In the first two years,the company paid $50,000 and $13,000.It is now the end of the third year,and the company has a loss of $160,000 for tax purposes.The company carries losses to the earliest year possible.The tax rate is currently 25%.
Requirement:
Compute the amount of income tax payable or receivable in the current (third)year.

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Definitions:

Thomas-Kilman Conflict Model

A model identifying five strategies to handle conflict: avoiding, accommodating, competing, compromising, and collaborating.

Collaborator

Someone who brings both sides together for discussion and not only is most likely to bring about a win-win solution but is actually necessary for it.

Thomas-Kilman Conflict Model

A model that identifies five conflict handling styles: competing, collaborating, compromising, avoiding, and accommodating.

Avoiders

Individuals who typically deal with conflicts or stressful situations by distancing themselves, either physically or emotionally.