Brass co. reported income before income tax expense of $60,000 for 2017. brass had no permanent or temporary timing differences for tax purposes. brass has an effective tax rate of 30% and a $40,000 net operating loss carry-forward from 2016. what is the maximum income tax benefit that brass can realize from the loss carry-forward for 2017?

(a) $20,000
(b) $18,000
(c) $12,000
(d) $40,000

The answer is C.

Explanation:

The $40,000 net operating loss carry-forward is the amount of loss in year 1 which may be carried forward to future years to offset the tax due in those years. The value of the carry-forward is the net operating loss multiplied by the tax rate for the year in which the carry-forward is expected to be realized. Therefore, the maximum income tax benefit that Brass can realize from the carry-forward in year 2 is $12,000 ($40,000 x 30%).

answer; i believe the answer is 40,600,000;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know