Dodger Corporation Reported a Loss for Both Financial Reporting Purposes

question 42

Multiple Choice

Dodger Corporation reported a loss for both financial reporting purposes and tax reporting purposes of $231,000 in 2011. For financial reporting purposes, Dodger reported income before taxes for years 2008-2010 as listed below:

Assuming Dodger's tax rate is 30 percent in all periods, and that the company uses the carryback provisions, what amount should appear in Dodger's statements for financial reporting purposes as a net loss in 2011?

• A) $0
• B) $69,300
• C) $161,700
• D) $234,300

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Definitions:

Depressants

Substances that reduce neurological activity and produce a calming effect, often used to treat anxiety or sleep disorders.

Anxiety

A state of distress or agitation over an outcome that is not assured.

Conscious

Being aware of and responsive to one's surroundings; awake.

Waking State

A state of consciousness where an individual is fully awake and aware of their environment.