Compute the after tax net loss reported by Maine

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Question - Maine Company reported a pretax operating loss of $150,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 40% for 2021 and subsequent years. In 2019, Maine reported taxable income of $42,000 and paid $14,700 in income taxes; and in 2020 Maine reported taxable income of $40,000 and paid $16,000 in taxes. Assume Maine Company manufactures and sells automotive parts. In addition, Maine expects to generate positive operating profits and taxable income in the future. Compute the after tax net loss reported by Maine on its year end December 31, 2021 income statement?

A) $119,300

B) $150,000

C) $90,000

D) $92,100

Reference no: EM132514072

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