By how much did BlubBlub Co deferred tax assets decrease

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Reference no: EM132972008

Question - BlubBlub Co. experienced the following timeline of taxable income before the effects of net operating loss carrybacks and carryforwards.

Year Taxable income before the effects of net operating loss carrybacks and carryforwards

2017 $160

2018 -$252

2019 $138

Under the U.S. Tax Cuts and Jobs Act of 2017 ("TCJA"), net operating losses cannot be carried backward, but can be carried forward indefinitely. Net operating loss carryforwards can be used to reduce taxable income by up to 80% of taxable income in any year. The federal corporate income tax rate is 21%.

After taking into consideration the effects of net operating loss carrybacks and carryforwards, as well as the limitations on using carryforwards under the TCJA, by how much did BlubBlub Co.'s deferred tax assets decrease in 2019?

Reference no: EM132972008

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