Kyle Inc. incurred a net operating loss of $580,000 in 2011. Combined income for 2008, 2009, and

Question:

Kyle Inc. incurred a net operating loss of $580,000 in 2011. Combined income for 2008, 2009, and 2010 was $460,000. The tax rate for all years is 35%. Prepare the journal entries to record the benefits of the carryback and the car ryforward, assuming it is more likely than not that the benefits of the loss carryforward will be realized.