What the journal entry recorded would contain anincome tax

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Problem 1: In 2016, Swope Company reports a pretax operating loss of $70,000 for both financial reporting and income tax purposes. Pretax financial income and taxable income for the previous 3 years had been: 2013-$15,000 (tax rate 20%),2014- $24,000 (tax rate 25%), and 2015-$49,000 (tax rate 30%). The current tax rate is 30%, and no change in the tax rate has been enacted for future years. At the end of 2016, the journal entry recorded would contain anincome tax benefit from an operating loss carryback of:

a. $19,950
b. $0
c. $19,800
d. $18,300

Reference no: EM132835444

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