Taylor inc. incurred a financial and taxable loss for 2013., Ask an Expert

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Taylor Inc. incurred a financial and taxable loss for 2013. Taylor therefore decided to use the carryback provisions as it had been profitable up to this year. How should the amounts related to the carryback be reported in the 2013 financial statements?

a) The reduction of the loss should be reported as a prior period adjustment.

b) The refund claimed should be reported as a deferred charge and amortized over five years.

c) The refund claimed should be reported as revenue in the current year.

d) The refund claimed should be shown as a reduction of the loss in 2013.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M946159

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