7. Ignoring any corrections suggested by the above data, prior to 2015 the company reported a pretax loss of $50,000 in 2013 and a $7,500 tax benefit assuming ‘‘more likely than not’’ that there would...

7. Ignoring any corrections suggested by the above data, prior to 2015 the company reported a pretax loss of $50,000 in 2013 and a $7,500 tax benefit assuming ‘‘more likely than not’’ that there would be adequate income in 2014. The company reported pretax income of $20,000 in 2014 and no related tax expense since the loss in 2013 offset the 2014 income. At the end of 2014, the company anticipated future ‘‘more likely than not’’ pretax income of $30,000.