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1 June, 18:23

Shane starts a new business this year and incorporates the business entity as SNB, Inc (taxed as a C corporation). Unfortunately, SNB, Inc. has a slower than expected start and loses $6,800. Assuming a 40% income tax rate, how much income tax will SNB, Inc. pay this year?

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  1. 1 June, 18:47
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    no tax this year

    Explanation:

    given data

    Shane loses = $6,800

    income tax rate = 40%

    to find out

    how much income tax pay this year

    solution

    we know that here Shane business as SNB, Inc started slower than expected

    and we notice he have loss of $6,800

    so that it will pay no tax this year because his business generate a loss

    so it is probably can be carry forward loss to future year to offset income

    so no tax this year
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