Nickerson Corporation Began Operations in 2007

question 43

Multiple Choice

Nickerson Corporation began operations in 2007.There have been no permanent or temporary differences to account for since the inception of the business.The following data are available:

In 2011, Nickerson had an operating loss of $930,000.What amount of income tax benefits should be reported on the 2011 income statement due to this loss?

• A)$409,500
• B)$373,500
• C)$372,000
• D)$279,000

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Definitions:

Custodial Staff

Employees responsible for cleaning and maintaining buildings, ensuring environments are tidy and sanitary.

Recent Hire

An individual who has been employed by an organization or company in the near past.

Competing Firm

A company that operates in the same industry and market as another, offering similar products or services to the same customer base.

Telecommunications

The technology-driven sector that facilitates communication over distances through the transmission of voice, video, data, and other signals by electronic or electromagnetic means.