What is the maximum income tax benefit

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Question - Brass Co. reported income before income tax expense of $60,000 for 2017. Brass had no permanent or temporary timing differences for tax purposes. Brass has an effective tax rate of 30% and a $40,000 net operating loss carry-forward from 2016. What is the maximum income tax benefit that Brass can realize from the loss carry-forward for 2017?

$18,000

$40,000

$12,000

$20,000

Reference no: EM131631741

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