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AirParts Corporation reported a net operating loss of $30 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively,

AirParts Corporation reported a net operating loss of $30 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was $30 million and $25 million. The enacted tax rate each year is 45%.

Prepare the journal entry to recognize the income tax benefit of the net operating loss. AirParts elects the carryback option

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