Tamarisk Corporation had the following tax information. Year 2018 2019 2020 Taxable Income $288,000 312,000 384,000 Tax Rate 35 % 30 30 Taxes Paid $100,800 93,600 115,200 In 2021, Tamarisk suffered a net operating loss of $460,800, which it elected to carryback. The 2021 enacted tax rate is 29%. Prepare Tamarisk'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 O for the amounts.)

Tamarisk Corporation had the following tax information. Year 2018 2019 2020 Taxable Income $288,000 312,000 384,000 Tax Rate 35 % 30 30 Taxes Paid $100,800 93,600 115,200 In 2021, Tamarisk suffered a net operating loss of $460,800, which it elected to carryback. The 2021 enacted tax rate is 29%. Prepare Tamarisk'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 O for the amounts.)

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter16: Multijurisdictional Taxation

Section: Chapter Questions

Problem 1BCRQ

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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%.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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Vaughn Company reported the following pretax financial income (loss) for the years 2018-2022. 2018 $259,200 378,000 129,600 (615,600 ) 194,400 2019 2020 2021 2022 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2018 and 2019, and 20% for 2020-2022. Assume the carryback provision is used first for net operating losses.
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