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Alchen [17]
3 years ago
5

In 2018, Bodily Corporation reported $230,000 pretax accounting income. The income tax rate for that year was 25%. Bodily had an

unused $126,000 net operating loss carryforward from 2016 when the tax rate was 32%. Bodily's income tax payable for 2018 would be:
Business
1 answer:
schepotkina [342]3 years ago
6 0

Answer:

Bodily's income tax payable for 2018 would be $26000.

Explanation:

net tax expense for the year

= tax for the year - tax saving on loss set off

= $230,000*25% - $126,000*25%

= 57500 - 31500

= 26000

Therefore, Bodily's income tax payable for 2018 would be $26000.

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