Question

assume that the kelso company operates in an industry for which nol carryback is allowed. the kelso company had the following operating results:yearincome (loss)tax rateincome tax202248,00035,800first year of operations202354,00030,2002024(69,000)25%0what is the income tax refund receivable?

Answer 1

There would be no income tax refund receivable for the Kelso Company in 2024 as the company incurred a loss in that year and there is no NOL carryback allowed.

Step-by-step explanation:

The question concerns determining the income tax refund receivable for the Kelso Company given that there is no operating loss (NOL) carryback allowed.

Based on the information provided, Kelso Company incurred a loss in 2024, which means there would be no taxable income to apply the tax rate against and therefore no income tax refund receivable for that year, assuming the loss cannot be carried back to offset previous years' income.