Respuesta :
Answer:
Answer: As an income-tax benefit that reduces the operating loss on the income statement.
Explanation:
One of the option a Company has as a way of offset the income of previous years is by way of carry back of current year loss, this will result in the refund of tax already with the authority. Since its a benefit to the company this should be shown as a tax benefit in statement of profit and loss which help to reduces the loss on the income statement therefore the carryback be presented into the company's Year 3 financial statements- As an income-tax benefit that reduces the operating loss on the income statement. .
Operating loss before income tax (XXXX)
Tax expense XXXX
Net loss after tax (XXXX)
Answer:
The income-tax gain will lower the loss operating on the statement of income
Explanation:
The Company has the choices of offset the income of last yea by a method of taken back of year current loss, this will lead to a payback of tax already with jurisdiction.
However, because its a gain to the company this should appear as a benefit in tax in statement of loss and profit which will decrease the loss on the statement of income,therefore, we have the following:
Before the income tax, Operating loss x (XXXX)
The Tax expense XXXX
The Net loss after tax (XXXX)