Question
Riverbed Corporation had the following tax information: Year Taxable Income Tax Rate Taxes Paid 2017 $392,000 31% $121,520 2018 314,000 30% 94,200 2019 401,700 30%
Riverbed Corporation had the following tax information:
| Year | Taxable Income | Tax Rate | Taxes Paid | |||||
|---|---|---|---|---|---|---|---|---|
| 2017 | $392,000 | 31% | $121,520 | |||||
| 2018 | 314,000 | 30% | 94,200 | |||||
| 2019 | 401,700 | 30% | 120,510 | |||||
In 2020, Riverbed suffered a net operating loss of $547,000, which it decided to carry back. The 2020 enacted tax rate is 25%. Prepare Riverbeds entry to record the effect of the loss carryback.
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
14th Edition
1260247821, 978-1260247824
