What is the amount of the deferred tax asset

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Reference no: EM13863493

A company had zero Taxable Income in 2010, Taxable Income of $20,000 in 2011, and a Net Operating Loss (NOL) of $40,000 in 2012. This is the company’s first-ever NOL. The company thinks that it is more likely than not that it will have taxable income in the future before the tax loss carry forward would expire. The statutory tax rate is 35.0%.

What is the amount of the Deferred Tax Asset for NOLs at the end of 2012?

$40,000

$7,000

$14,000

$20,000

Reference no: EM13863493

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