2. At the end of 2013, the first year of operations, the company reported a net operating loss of $80,000 and a tax credit of $5,000. At that time, the company did not recognize any of the tax benefit...

2. At the end of 2013, the first year of operations, the company reported a net operating loss of $80,000 and a tax credit of $5,000. At that time, the company did not recognize any of the tax benefit associated with the operating loss or tax credit. However, the company was hopeful that these benefits could be recognized in the future due to the ability to carry forward both items against future taxable income and taxes.