9 the valuation allowance account that is used in

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Chapter_19_practice_quiz_-_solutions

10 .   Under current tax law a net operating loss may be carried forward up to :
a. 5 years .
b. 10 years .
c. 15 years .
d. 20 years
Answer:  d.   20 years
8 .   What should be the balance in Kent 's deferred tax liability account as of December 31 , 2016 ?
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9 .   The valuation allowance account that is used in conjunction with deferred taxes relates :
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11 .   What did Puritan report on December 31 , 2016 , as the deferred tax asset for the NOL carryforward ?
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12 .   What would Puritan report as net income for 2017 ?
a. $ 620,000 .
b. $ 420,000 .
c. $ 700,000 .
d. $ 600,000 .
Answer:  d.   $ 600,000 .
13 .   What would be the net loss in 2016 reported in Puritan ’s income statement ?
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14 .   What would be the net loss in 2016 reported in Puritan ’s income statement assuming that management deemed future income was not likely ?
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South-Western Federal Taxation 2020: Comprehensive
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Chapter 3 / Exercise 1
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified
9. The valuation allowance account that is used in conjunction with deferred taxes relates: a. Only to deferred tax liabilities. b. To both deferred tax assets and liabilities. c. Only to deferred tax assets. d. Only to income taxes receivable due to net operating loss carrybacks.
10. Under current tax law a net operating loss may be carried forward up to:
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The document you are viewing contains questions related to this textbook.
South-Western Federal Taxation 2020: Comprehensive
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Chapter 3 / Exercise 1
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified
Use the following to answer questions 11–14: Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations: 2015 $ 350,000 2016 (600,000) 2017 700,000 Puritan's tax rate is 40% for all years. Puritan elected a loss carryback. As of December 31, 2016, Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. 11. What did Puritan report on December 31, 2016, as the deferred tax asset for the NOL carryforward?
12. What would Puritan report as net income for 2017?
13. What would be the net loss in 2016 reported in Puritan’s income statement? a. $360,000. b. $240,000. c. $460,000. d. $500,000.
14. What would be the net loss in 2016 reported in Puritan’s income statement assuming that management deemed future income was not likely ?

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