Before considering a net operating loss carryforward of $40 million, Fowler Corp
ID: 2381567 • Letter: B
Question
Before considering a net operating loss carryforward of $40 million, Fowler Corporation reported $100 million of pretax accounting and taxable income in the current year. The income tax rate for all previous years was 40%. On January 1 of the current year a new tax law was enacted, reducing the rate to 30% effective immediately. Fowler's income tax payable for the current year would be:
$24 million.
$14 million.
$30 million.
$18 million.
$24 million.
$14 million.
$30 million.
$18 million.
Explanation / Answer
$24 million.
$24 million.