Valis Corporation had the following tax information.

In 2007 Valis suffered a net operating loss of $450,000, which it elected to carry back. The 2007 enacted tax rate is 29%. Prepare Valis's entry to record the effect of the loss carryback.

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Year Taxable Income Tax Rate Taxes Paid 2004 $300,000 35% $105,000 2005 $325,000 30% $ 97,500 2006 $400,000 30% $120,000