Accounting 101" \ The Rustbelt Manufacturing Company, a parts supplier for the Big Three auto makers, usually has managed to earn a profit until the past year when it in curred an operating loss of $1 million because of a business recession. The resulting net operating loss carryforward (NOL) of $1 million legally cannot be carried back to be applied against taxable income of prior periods for a refund of taxes previously paid. However, the company can use that carryforward to offset its taxable income and thereby reduce its income taxes payable in future years. \ The recession has not yet ended, and Rustbelt does not anticipate turning a profit for another two or three years. However, it does expect to have future taxable income in excess of $1 million within the 15-year carryforward period allowed by law. Rustbelt's corporate income tax rate is 30 percent. \ Rustbelt's accounting manager, Betty Bookit, (also an accounting instructor at the local community college) views the NOL carryforward as a benefit. Bookit writes a journal entry to record an asset of $300,000 related to the income tax carryforward and hands it to Joe Greenshade, accounting clerk, the day the books are to be closed for the year. Greenshade, responsible for making all journal entries, hesitantly enters her office and asks, What accounting class did I miss that allows us to turn a loss into an asset? \ Should Rustbelt recognize the net operating loss carryforward as a $300,000 asset?