What was clinton income tax expense

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Reference no: EM132815552

Clinton Corp. had the following pretax income (loss) over its first three years of operations:

2014 $1,200,000

2015 $(900,000)

2016 $1,500,000

Problem 1: For each year there were no deferred income taxes and the tax rate was 40%. For its 2015 tax return, Clinton did not elect a net operating loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2015. What was Clinton's income tax expense in 2016?

a. 480,000.

b. 160,000.

c. 240,000.

d. 600,000.

Reference no: EM132815552

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