In the First Year of Operations,a Company Reports Taxable Income

question 49

Essay

In the first year of operations,a company reports taxable income of $225,000 and paid a tax rate of 28%.It is now the end of the second year,and the company has a loss of $375,000 for tax purposes.The company's management believes it is probable the company will be able to use up its tax losses.The tax rate is currently 32%%.
Requirement:
Compute the amounts of income tax receivable and/ or deferred income tax asset in the current (second)year.

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Definitions:

Globalization

The method through which companies or various groups gain international impact or begin functioning globally.

Economic Connectivity

The degree and complexity of interdependence between different parts of the economic system, including industries, markets, and countries.

Social Connectivity

The extent to which individuals or groups interact with and are integrated into networks of social relationships.

OB Theories

Theories in organizational behavior that explore how individuals and groups act within organizations to understand and improve workplace dynamics.