Answer:
$23,000
Explanation:
The computation of the income tax refund receivable is shown below:
Income tax refund receivables = (Loss carry back to year 2017 × Tax rate for year 2017) + (Loss carry back to year 2018 × Tax rate for 2018)
= ($20,000*35%) + ($40,000*40%)
= $7,000 + $16,000
= $23,000
We simply applied the above formula so that the income tax refund receivable is to be computed