Hammaker Manufacturing Corp. began operations in year 1 and reported taxable net income of $10 million and $4 million in year 1 and year 2, respectively. In year 3, Hammaker reports a net operating loss (NOL) of $16 million. The tax rate for the years year 1 and year 2 is 35%, but the enacted tax rate for year 3 and later years will be 21%. As part of year-end adjusting entries, what total tax benefit will Hammaker record as a result of the year 3 NOL

$5320000 is the total tax benefit.

Explanation:

The following calculation is to be made in order to calculate the total tax benefit as a result of the year 3 NOL is:

Total tax benefit as a result of the year 3 NOL = ( 10,000,000 plus 4000000) multiply with 35 percent plus ( 2000000 multiply with 21 percent)

After calculating the above linear equation ,we get, $5320000

Therefore, the total tax benefit that Hammaker will record in the books of accounts will be $5320000.  

answer: life insurance

explanation: