What after tax net income is reported

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Hopper Corporation reported the following results for its first three years of operations:

2019 Income (before income taxes) $ 40,000
2020 Loss (before income taxes) (360,000)
2021 Income (before income taxes) 400,000

Problem 1: There were no permanent or reversible differences during these three years. Assume an income tax rate of 30% for 2019 and 2020, and 40% for 2021, and that any tax loss carryforward recognized is more likely than not to be realized. If Hopper elects to use both the carryback and the carryforward provisions, what after tax net income (loss) is reported for 2020?

a. $(360,000).
b. $0.
c. $(348,000).
d. $(220,000).
e. None of the above.

Reference no: EM132972158

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