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Bridgeport Corporation had the following tax information: Year Taxable Income Tax Rate Taxes Paid 2014 $391,000 31% $121,210 2015 313,000 30% 93,900 2016 399,700 30%
Bridgeport Corporation had the following tax information:
| Year | Taxable Income | Tax Rate | Taxes Paid | |||||
| 2014 | $391,000 | 31% | $121,210 | |||||
| 2015 | 313,000 | 30% | 93,900 | |||||
| 2016 | 399,700 | 30% | 119,910 | |||||
In 2017, Bridgeport suffered a net operating loss of $556,000, which it decided to carry back. The 2017 enacted tax rate is 25%.
Prepare Bridgeports entry to record the effect of the loss carryback. (PLEASE SHOW ALL WORKING)
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