Difference between accounting and taxable income

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Reference no: EM133334526

Question: In 2019 to 2021 respectively, Crypto Co. (CC) earned taxable income of $500,000, $800,000 and $700,000, and paid income tax of $150,000, $260,000, and $200,000. It is now the end of 2022 and the company has incurred a loss of $3,500,000 for tax purposes and earns an accounting loss before tax of $3,000,000. The difference between accounting and taxable income is due to CCA exceeding depreciation expense. The tax rate is currently 30%. CC anticipates using only 60% of the losses carried forward within the allowable carryforward period.

Reference no: EM133334526

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