Assignment help 2598

Flynn Corporation reported the following results for its first three years of operation:1997 income (before income taxes) $20,000(180,000)1999 income (before income taxes) 200,000There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 30% for 1997 and 1998, and 40% for 1999.A) Assuming that Flynn elects to use the carryback provision, what income (loss) is reported in 1998? (Assume that any deferred tax asset recognized is more likely than not to be realized.)a. $(180,000)b. 0c. $(174,000)d. $(110,000)B) Assuming that Flynn elects to use the carryforward provision and not the carryback provision what income (loss) is reported in 1998?a. $(180,000)b. $(108,000)c. 0d. $(174,000)