In the First Two Years of Operations, a Company Reports

question 7

Multiple Choice

In the first two years of operations, a company reports taxable income of $200,000 and $250,000, respectively. During these first two years, the tax rates were 30% and 35% respectively. It is now the end of the third year, and the company has a loss of $260,000 for tax purposes. The company carries losses to the earliest year possible. The tax rate is currently 40%. The amount of income tax receivable in the current (third) year is:

• A)$104,000
• B)$81,000
• C)$147,500
• D)$91,000

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Definitions:

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Neuroscience

The scientific study of the nervous system, encompassing its structure, function, development, genetics, and pathology.

Frontal Part

Referring to the frontal lobe of the brain, responsible for complex cognitive functions, emotional regulation, and decision making.

Brain Development

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