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  • Dix Company Reported Operating Income Loss Before Income Tax in Its

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    Dix Company reported operating income losses before taxes of $100,000 in 2016, $200,000 in 2017, and income of $400,000 in 2018. Dix carried the 2017 loss back to 2016, resulting in a tax benefit of $70,000 (2017 loss of $200,000 x 35% tax rate) on its 2017 income statement and a deferred tax asset of $70,000 on its 2017 balance sheet. Dix paid $140,000 (2018 income of $400,000 x 35% tax rate) in taxes for 2018.

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    Dix Company reported operating income losses before taxes of $100,000 in 2016, $200,000 in 2017, and income of $400,000 in 2018. Dix carried the 2017 loss back to 2016, resulting in a tax benefit of $70,000 (2017 loss of $200,000 x 35% tax rate) on its 2017 income statement and a deferred tax asset of $70,000 on its 2017 balance sheet. Dix paid $140,000 (2018 income of $400,000 x 35% tax rate) in taxes for 2018.

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    Dix Company Reported Operating Income Loss Before Income Tax in Its

    Uploaded by

    trilocksp Singh
    Dix Company reported operating income losses before taxes of $100,000 in 2016, $200,000 in 2017, and income of $400,000 in 2018. Dix carried the 2017 loss back to 2016, resulting in a tax benefit of $70,000 (2017 loss of $200,000 x 35% tax rate) on its 2017 income statement and a deferred tax asset of $70,000 on its 2017 balance sheet. Dix paid $140,000 (2018 income of $400,000 x 35% tax rate) in taxes for 2018.

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    Dix Company reported operating income loss before

    income tax in its


    Dix Company reported operating income loss before income tax in its

    Dix Company reported operating income/loss before income tax in its first three years of
    operations as follows:
    2016................................$ 100,000
    2017................................ (200,000)
    2018..................................400,000
    Dix had no permanent or temporary differences between book income and taxable income in
    these years. Dix elected to carry the 2017 loss back to the extent possible. Assume a 35% tax
    rate for all years, and assume there is no valuation allowance.
    Required:
    1. What amount should Dix report as a tax benefit on its 2017 income statement?
    2. What amount of deferred tax asset should Dix report on its December 31, 2017, balance
    sheet?
    3. What amount of taxes does Dix pay related to its 2018 tax return?

    Dix Company reported operating income loss before income tax in its
    SOLUTION-- http://solutiondone.online/downloads/dix-company-reported-operating-income-loss-
    before-income-tax-in-its/

    Unlock answers here solutiondone.online

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