Vintage Car Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2015 through 2021 as follows.
Income (loss) Tax Rate
2015 $40,000 40%
2016 $63,000 40%
2017 36,000 30%
2018 (179,000) 35%
2019 85,000 40%
2020 59,000 40%
2021 (135,000) 40%
Pretax financial income (loss) and taxable income (loss) were the same for all years since Vintage Car has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
What is the amount of deferred tax asset to be recognized in 2018, if there is no valuation allowance?
What net income (loss) is reported in 2018 ?
For 2019, what is the amount of current income tax expense?