Company tax credit or tax payment


Problem:

My company lost $600,000 during 2004(its net income was -$600,000). The corporate tax rate is 40 percent. The company paid the following amount in taxes over the past five years:

Year    Taxes Paid
1999    $ 50,000
2000    75,000
2001    60,000
2002    40,000
2003    160,000

Assume that current carry back and carry forward provisions were available in prior years. Showing the computatin what will be my company's tax credit or tax payment for 2004?

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Accounting Basics: Company tax credit or tax payment
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