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Question - Elmos Corporation reported the following results for its first three years of operation:
2016 income (before income taxes) $200,000
2017 loss (before income taxes) (1,800,000)
2018 income (before income taxes) 2,000,000
There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 30% for 2016 and 2017, and 40% for 2018.
Assuming that Elmos elects to use the carryforward provision, what Net Income/(Loss) is reported in 2017?
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