[lynette1259]

Please Help, I do not understand this stuff.

A corporation reported a $66,000.00 operating loss in 2005. In the preceding three years, they reported the following income before taxes:

YEAR INCOME TAXES TAX RATE
2002 $36,000 $10800 30%
2003 $24,000 $8,400 35%
2004 $48,000 $16,200 35%

Amount of tax benefit to be reported in 2005 arising from tax carryback of the current tax code would be
$23,100
$22,500
$21,300
$19,200