Answer:
$24,000
Explanation:
Total Taxable income of first and second year = $10,000 + $30,000 = $40,000
Net loss in 3rd year = $100,000
Net Operating loss carry back = Regina Taxable income Total of first and second year of operations
Net Operating loss carry back = $40,000
Net Operating loss Carry forwards = Net loss - Net Operating loss carry back
Net Operating loss carry forward = $100,000 - $40,000
Net Operating loss carry forward = $60,000
Income tax rate = 40%
Income tax benefit from the Net Operating loss carry forward = Net Operating loss carry forward * Income tax rate
Income tax benefit from the Net Operating loss carry forward = $60,000 * 40%
Income tax benefit from the Net Operating loss carry forward = $24,000
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