Since Tanner, Inc. incurred a financial and taxable loss for 2018. and decided to use the carryback provisions as it had been profitable up to this year, the amounts related to the carryback should be reported in the 2018 financial statements as a benefit due.

Tax loss carryback is when a corporation retrospectively adjusts its tax returns for prior periods if it incurs a net operating loss (NOL) in current period.

The loss carryback generates a tax refund for the business because it reduces previous year tax liability. After the carried back loss is applied, it will be as though the business overpaid taxes the previous year; which will now be shown as a benefit in the current year

4 0

2 years ago

Sara spends $25 for an all-day ticket to an amusement park. After one ride, it begins to rain and she wishes she had never come.

iren2701 [21]

Answer:

False.

Explanation:

False, it is given that Sara spends $25 for all-day ticket in the amusement park. However, this is a shuck cost that she can not recover. Moreover, she has taken one ride so marginal analysis shows that all his $25 is not wasted. She has utilized some portion of their money so we can not say that she has wasted all his money.

7 0

3 years ago

At the end of the accounting period, Isaac Company had a balance of $4,000 in its common stock account, additional paid in capit

Greeley [361]

Answer:

The total amount of stockholders' equity is: $10,000

Explanation:

The accounts and values included in stockholders' equity are:

Common stock 4,000 (1)
Paid in capital 4,000 (2)
Treasury stock -1,000 (3)
Retained earnings 3,000 (4)

Total stockholders' equity 10,000

1 - Nominal value of outstanding shares.

2- Difference between the price paid by stockholders when shares were issued and nominal value.

3- Shares recovered by the company.

4- Earning accumulated by the company.

7 0

3 years ago