User Account

All Pages

Is a tax provision on the million of income

Assignment Help Accounting Basics
Reference no: EM132699233

Assume that a valuation allowance of $100 million is recorded as of December 31, 2018 ($150 million DTA less $50 million reversing DTLs).

Further assume that the Company's projection for 2019 pretax book income of $0 is accurate, but the Company sells a component of the business and recognizes the component as a discontinued operation.

The discontinued operations earn $20 million before tax, and the continuing operations lose $20 million before tax for a net pretax book income of $0.

As described above, the Company has a full valuation allowance.

Question 1: Is there a tax benefit on the loss of $20 million from continuing operations?

Question 2: Is there a tax provision on the $20 million of income from discontinued operations?

Reference no: EM132699233

Questions Cloud

Health care organizations market to target populations : Both social media and the Internet have changed the way that health care organizations market to their target populations.
Prepare journal entries to record transaction for windsor : Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Nursing care and therapy services : You currently work as a marketing coordinator for New City Home Care, a private home health company that offers nursing care and therapy services
Organization Baylor Scott and White Health System : You have been asked to provide more data to support your strategic recommendations that the organization should consider pursuing to effectively
Is a tax provision on the million of income : Assume that a valuation allowance of $100 million is recorded. Is there a tax provision on the $20 million of income from discontinued operations?
Corporate finance discussion board : Select a currency other than the U.S. dollar (such as the Euro, Swiss Franc, Yen, or another currency of your choosing), and research the current exchange
Different types of menus : Compare and contrast two different types of menus and the type of operation where they would be found.
What is the name of the compound produced by the reaction : What is the name of the compound produced by the reaction of benzoic acid with sodium hydroxide? sodium hydroxybenzoate.
Management relative to organization in terms of inputs : Describe operations management relative to this organization in terms of inputs, transformation processes, and outputs.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd