Question
Nolan Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2018 $300,000 35 % $105,000 2019 325,000 30 97,500 2020 400,000
Nolan Corporation had the following tax information.
| Year | Taxable Income | Tax Rate | Taxes Paid | ||||
|---|---|---|---|---|---|---|---|
| 2018 | $300,000 | 35 | % | $105,000 | |||
| 2019 | 325,000 | 30 | 97,500 | ||||
| 2020 | 400,000 | 30 | 120,000 | ||||
In 2021, Nolan suffered a net operating loss of $480,000, which it elected to carryback. The 2021 enacted tax rate is 29%. Prepare Nolans entry to record the effect of the loss carryback.
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Edi Audit And Control
Authors: I. Walden, A. Braganza
3rd Edition
1855542080, 978-1855542082
