Reference no: EM131776851
Problem 1
ABC Company reported an operating loss of $132,000 for financial reporting and tax purposes in 2009. The enacted tax rate is 40% for 2009 and all future years. Assume that ABC elects a loss carryback. No valuation allowance is needed for any deferred tax assets. Taxable income, tax rates, and income taxes paid in ABC's first four years of operations were as follows:
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Taxable
income
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Tax
rates
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Taxes
paid
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2005
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$30,000
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30%
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$9,000
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2006
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35,000
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30%
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10,500
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2007
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42,000
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35%
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14,700
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2008
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40,000
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40%
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16,000
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Required:
1. What is the tax liability for each year?
2. What amount of tax refund is generated by the NOL?
2. In what year does a deferred tax asset arise and what is the related NOL.
3. What year is the deferred tax asset used, and how much?
Problem 2
On December 31 (the end of the fiscal year), ABC received the PBO report from the actuary. The following information was included in the report: ending PBO, $110,000; benefits paid to retirees, $10,000; interest cost, $7,200. The discount rate applied by the actuary was 8%. What was the beginning of the year PBO?
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Depletion and amortization similar
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What amount of tax refund is generated by the nol
: What amount of tax refund is generated by the NOL. In what year does a deferred tax asset arise and what is the related NOL
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