Amount dove report as income tax liability


Dove, Inc., a calendar-year corporation, reported the following operating income (loss) before income tax for its first three years of operations: 2011 $80,000; 2012 $(280,000); 2013 $400,000. There are no permanent or temporary differences between operating income (loss) for financial and income tax reporting purposes. When filing its 2012 tax return, Dove did not elect to forego the carryback of its loss for 2012. Assume a 30% tax rate for all years. What amount should Dove report as its income tax liability at December 31, 2013?

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Accounting Basics: Amount dove report as income tax liability
Reference No:- TGS046009

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