Tanner, Inc. incurred a financial and taxable loss for 2018. Tanner therefore decided to use the carryback provisions as it had

Question

4 years ago

11

Tanner, Inc. incurred a financial and taxable loss for 2018. Tanner therefore decided to use the carryback provisions as it had

been profitable up to this year. How should the amounts related to the carryback be reported in the 2018 financial statements

Business

1 answer:

jeka94 · Answer 1 · 2021-11-13T00:27:28+03:00

Answer:

Carry-back should be reported as a benefit

Explanation:

Tanner, Inc. is a company which has suffered a loss in 2018, and they have planned to use carry-back provisions because they generated profit. It is compulsory to report the provision in the 2018 financial statement. Overall, tanner, Inc. must report carry-back profits as a benefit in 2018 financial statement, because of the loss they received in 2018.