The dairy cooperative Fonsalve records a tax loss of 900,000 in 20X5. The legislation (case data) allows a carryback only against 20X4 taxable profit, which amounted to 600,000 taxed at 30%; the rest of the loss can be carried forward. Compute the carryback asset recognised in 20X5 and the loss still to be carried forward.
- 20X5 tax loss
- 900,000
- 20X4 taxable profit
- 600,000
- 20X4 tax rate (%)
- 30 %