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What amount of income tax benefits should be reported

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Question

Blossom Corporation began operations in 2016. There have been no permanent or temporary differences to account for since the inception of the business. The following data are available:

Year Enacted   Tax Rate   Taxable Income  Taxes Paid

2016               45%               $1350000     $607500          

2017             40%              1750000         700000        

2018            35%                    

2019              30%

In 2018, Blossom had an operating loss of $1830000. What amount of income tax benefits should be reported on the 2018 income statement due to this loss assuming that it uses the carryback provision?

Reference no: EM132326467

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