My company lost $600,000 during 2004(its net income was -$600,000). The corporate tax rate is 40 percent. The company paid the following amount in taxes over the past five years:
Year Taxes Paid
1999 $ 50,000
Assume that current carry back and carry forward provisions were available in prior years. Showing the computatin what will be my company's tax credit or tax payment for 2004?
Total taxes paid in the last 5 years: 385,000
Total income in the last 5 years= ...
Computation of tax credit or tax payment.