Kingbird Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2018 $306,000 35 % $107,100 2019 331,500 30 99,450 2020 408,000 30 122,400 In 2021, Kingbird suffered a net operating loss of $489,600, which it elected to carryback. The 2021 enacted tax rate is 29%.
Kingbird Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2018 $306,000 35 % $107,100 2019 331,500 30 99,450 2020 408,000 30 122,400 In 2021, Kingbird suffered a net operating loss of $489,600, which it elected to carryback. The 2021 enacted tax rate is 29%.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
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Kingbird Corporation had the following tax information.
In 2021, Kingbird suffered a net operating loss of $489,600, which it elected to carryback. The 2021 enacted tax rate is 29%.
Prepare Kingbird’s entry to record the effect of the loss carryback. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
| Year | Taxable Income |
Tax Rate |
Taxes Paid |
||||
|---|---|---|---|---|---|---|---|
|
2018
|
$306,000 | 35 | % | $107,100 | |||
|
2019
|
331,500 | 30 | 99,450 | ||||
|
2020
|
408,000 | 30 | 122,400 |
In 2021, Kingbird suffered a net operating loss of $489,600, which it elected to carryback. The 2021 enacted tax rate is 29%.
Prepare Kingbird’s entry to record the effect of the loss carryback. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
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