Carryback provisions in the tax law

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Garrison Designs, Inc., a corporation organized on January 1, 2002, reported the following incomes (losses) for the ten-year period, 2002-2011:

Year Income (Loss) Income Tax Rate Income Tax Paid

2002 $ 16,000 50% $ 8,000
2003 (40,000) 50 0
2004 16,000 48 7,680
2005 24,000 48 11,520
2006 (32,000) 45 0
2007 16,000 42 6,720
2008 32,000 42 13,440
2009 64,000 34 21,760
2010 80,000 34 27,200
2011 (16,000) 30 0

Applying the carryback provisions in the tax law, compute the net amount of taxes paid (amounts paid less refunds) for the ten-year period ending December 31, 2011

Reference no: EM13137122

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