Amengual Corporation Began Operations in 2011 and Had Operating Losses

question 47

Multiple Choice

Amengual Corporation began operations in 2011 and had operating losses of $400,000 in 2012 and $300,000 in 2013.For the year ended December 31,2014,Amengual had a pretax financial income of $600,000.For 2012 and 2013,assume an enacted tax rate of 30 percent,and for 2014 a 35 percent tax rate.There were no temporary differences in any of the years.In Amengual's 2014 income statement,how much should be reported as income tax expense?

• A) $0
• B) $30,000
• C) $180,000
• D) $210,000

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Definitions:

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