What is the amount of income tax payable at december

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Question - Operating income and tax rates for C.J. Company's first three years of operations were as follows:

Income Enacted tax rate

2012 $200,000 35%

2013 ($500,000) 30%

2014 $840,000 40%

(a) Assuming that C.J. Company opts to carryback its 2013 NOL, what is the amount of income tax payable at December 31, 2014?

(b) Assuming that C.J. Company opts only to carryforward its 2013 NOL, what is the amount of deferred tax asset or liability that C.J. Company would report on its December 31, 2013 balance sheet?

Reference no: EM131804799

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