CISCO Systems operates in an industry for which NOL carryback is not allowed,
and had the following pretax income (loss) over its first four years of operations
2021
$ 112,500
2022
270,000
2023
(2,025,000)
2024
3,375,000
There were no temporary or permanent differences in any year and the tax rate
was 20%. No valuation account was deemed necessary for the deferred tax
asset as of December 31, 2023.
What amount should CISCO report as Income Tax Payable in 2024?
$270,000
$193,500
$675,000
