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    What amount should Peck report as an income tax refund receivable?

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    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:

    2006..$400,000...30%
    2007...$400,000...35%

    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

    a) $120,000
    b) $140,000
    c) $160,000
    d) $180,000

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    https://brainmass.com/business/auditing/peck-report-income-tax-refund-receivable-231220

    Solution Preview

    a) $120,000

    In carryback provision, the last two years of income can be taken as refund ...

    Solution Summary

    The solution explains how to calculate the amount of income tax refund receivable.

    $2.19

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