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Question - Wilson Corporation reported the following results for its first three years of operation:
2014 income (before income taxes) 150,000
2015 loss (before income taxes) (1,700,000)
2016 income (before income taxes) 2,100,000
There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 30% for 2014 and 2015, and 40% for 2016.
Assuming that Wilson elects to use the carryback provision, what net income (loss) is reported in 2015? (Assume that any deferred tax asset recognized is more likely than not to be realized.)
The financial statements of P&G are presented in Appendix 5B. The company's complete annual report, including the notes to the financial statements.
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