FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Conlin Corporation had the following tax information.
Year | Taxable Income | Tax Rate | Taxes Paid |
2015 | $300,000 | 35% | $105,000 |
2016 | 325,000 | 30 | 97,500 |
2017 | 400,000 | 30 | 120,000 |
In 2018, Conlin suffered a net operating loss of $480,000, which it elected to carry back. The 2018 enacted tax rate is 29%. Prepare Conlin’s entry to record the effect of the loss carryback.
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