Peck Co. reports a taxable and pretax financial loss of $400,000 for 2008. Peck's taxable and pretax financial income and tax rates for the last two years were:
The amount that Peck should report as an income tax refund receivable in 2008, assuming that it uses the carryback provisions and that the tax rate is 40% in 2008, is
In carryback provision, the last two years of income can be taken as refund ...
The solution explains how to calculate the amount of income tax refund receivable.