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AirParts Corporation reported an operating loss of $14 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was

AirParts Corporation reported an operating loss of $14 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was $14 million and $9 million. The enacted tax rate each year is 30%.

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

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