An August 11, 2020 article from WorldOil Magazine had the following headline: "Marathon Sets Up for $1.1 Billion Tax Refund via Coronavirus Aid Law." The article goes on to indicate, "That measure included a tax provision that allows companies to immediately deduct net operating losses and apply them to previous returns for five years from 2018, 2019, and 2020 - instead of only applying those deductions to future years. The benefit is supercharged

because deductions taken before the 2017 tax overhaul can be claimed at the 35% corporate tax rate instead of the current 21%."

Marathon Petroleum Corporation's June 30, 2020, 10Q states the following: "As of June 30, 2020. the estimated cash tax refund resulting from the NOL carryback provided in the CARES Act is $1.1 billion and arises solely due to taxes paid in prior years. Absent the CARES Act, we would have recorded a deferred tax asset for the expected NOL carryforward under the currently effective federal income tax rate."

• Assume now that the CARES Act was not in effect. Prepare a journal entry that records any tax expense (benefit) associated with the NOL carryforward, assuming a tax rate of 21% for current and future periods.