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Nguyen Limited reported a taxable and accounting loss of $ 130,000 for 2020. Its pre-tax accounting income for the last two years was as follows:
2018 $ 60,000 2019 80,000 Required:
Problem 1: What is the amount that Nguyen reports as a net loss for financial reporting purposes in 2020, assuming that it uses the carryback provisions. The tax rate for 2018 and 2019 was 30%. The enacted tax rate for 2020 and subsequent years is 25%.
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