Question

grouper inc. reported a taxable and accounting loss of $132800 for 2023. its pre-tax accounting income for the preceding two years was as follows: 2021 $61400 2022 81400 assuming that management wants to use the losses to carryback and recover previous income taxes paid, how much will grouper receive as a refund based on a 25% tax rate for all years involved? select answer from the options below $132800 $35700 $33200 $20350

Answer 1

To calculate the refund amount, we need to calculate the taxable income for the preceding two years and subtract the accounting loss of $132,800 for 2023. The refund amount is $35,700.

Step-by-step explanation:

To calculate the refund amount, we need to calculate the taxable income for the preceding two years and subtract the accounting loss of $132,800 for 2023. The taxable income for 2021 is $61,400 and for 2022 is $81,400. The total taxable income for the preceding two years is $142,800 ($61,400 + $81,400).

Since the tax rate is 25%, the refund amount can be calculated by multiplying the total taxable income by the tax rate:

Refund Amount = Total Taxable Income x Tax Rate = $142,800 x 0.25 = $35,700.