Refer to Practice 1614. Assume that the net operating loss in 2008 was $100,000 instead of $50,000.

Question:

Refer to Practice 16–14. Assume that the net operating loss in 2008 was $100,000 instead of $50,000. Make the journal entry necessary to record
(1) Any net operating loss (NOL) carryback in 2008 and
(2) Any net operating loss (NOL) carryforward created in 2008. The enacted tax rate for future years is 40%. State any assumptions you must make.