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

Exercise 37

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.