In 2018, Bodily Corporation reported $300,000 pretax accounting income. The income tax rate for that year was 30%. Bodily had an unused $120,000 net operating loss carryforward from 2016 when the tax rate was 40%. Bodily's income tax payable for 2018 would be: Group of answer choices 72,000. $54,000. $90,000. $42,000.

$54,000.

Explanation:

For the tax purposes losses can be carry forward and adjusted in the future income if not used in the current year. This will reduce the future tax liability as a result.

As the losses carried forward by the Bodily Corporation, had tax rate of 40% in prior year, but at time of adjustment the current rate will be applicable, which is 30%.

First we will adjusts the losses in the current income and then calculate the profit.

Pretax income of 2018             $300,000

Less: Losses carried forward  ($120,000)

Income Chargeable to tax       $180,000

Tax 30% ($180,000 x 30%)      $54,000  

Income after tax                        $126,000

i think you have to let the moderators that you want your old account to be activated.

answer; situational irony;