Question 18

Indigo Corporation had the following tax information.

Year		Taxable Income				Tax Rate		Taxes Paid
2015			$297,000			34%			$100,980
2016			327,000			29%			94,830
2017			400,000			29%			116,000

In 2018, Indigo suffered a net operating loss of $471,000, which it elected to carry back. The 2018 enacted tax rate is 28%. Prepare Indigos entry to record the effect of the loss carryback. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit