During 2015, its First year of operations, Joey Co. reported an operating loss of $125 Million for Financial Reporting and Tax purposes. The enacted Tax Rate is 40% for 2015 and this rate is not expected to change in the foreseeable future.

Required:

1) Given the data above, are there any Temporary Differences? Yes or No [Circle One]

2) Can Joey Co. utilize the Tax law provisions that allow for a Loss Carry-back? Yes or No [Circle One]

3) Prepare the appropriate entry to record Joey Cos 2015 Income taxes.