McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 8

In its first year of existence SCC corporation (a C corporation) reported a loss for tax purposes of $30,000. Using the corporate tax rate table, determine how much tax SCC will pay in year 2 if it reports taxable income from operations of $20,000 in year 2 before any loss carryovers.