NOL Carryforward VS Deferred tax asset

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  • August 21, 2011 at 9:43 pm #161346
    Anonymous
    Inactive

    If I have ($40) NOL available to offset CY income of $100, and the CY tax rate is 30%, shouldn’t my CY tax expense just be (100-40)X30%?

    For this question I’m reviewing, it seems to be saying that “tax expense” is still 100X30% and the 40X30% is deferred tax asset.

    Does the used amount of NOL carryforward always go into this deferred tax asset account?

    Thanks!!!

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  • August 22, 2011 at 12:00 am #292990
    Anonymous
    Inactive

    Nvm… suddenly realized NOL tax effect was first recorded as def tax asset… therefore the reversal…

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