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?

Question

Gwendolyn Mcdaniel

Business

30 March, 10:06

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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Answers (1)

Know the Answer?

Denisse Horn · Answer 1

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