Operating profits and taxable income in the future


Maine Company reported a pretax operating loss of $150,000 for financial reporting and tax purposes in 2012. The enacted tax rate is 40% for 2012 and subsequent years. In 2010, Maine reported taxable income of $42,000 and paid $14,700 in income taxes; and in 2011 Maine reported taxable income of $40,000 and paid $16,000 in taxes. Assume Maine requests a refund of taxes already paid by electing a loss carryback. In addition, Maine expects to generate positive operating profits and taxable income in the future. The after tax net loss reported by Maine on its year end December 31, 2012 income statement is??

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Accounting Basics: Operating profits and taxable income in the future
Reference No:- TGS047457

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