Suppose A company had the following taxable income and tax rates: 2015 20162017 2018 Taxable income S50,000 S100,000 $200,000 ($210,000) Income tax rate 35% company chooses NOL carryback, it will receive a tax refund of $74,000 Recall that the from the earlier year company SHOULD start offsetting the NOL with income starting Example 1a Collin Corp. had the following tax information. Year Taxable Tax rate Tax paid 2016 2017 2018 income S300,000 325,000 400,000 35% 30% 30% S 105,000 97 120,000 In 2019, Collin suffered a net operating loss of $480,000, whi enacted tax rate is 29%. Required: prepare Collin's entry to record the effect of the loss carry back. ch it elected to carry back. The 2019 Income tax refund receivable 144,000 Income Tax benefits from NOL carryback 144,000 Example 1b: Assuming no temporary or permanent differences. Rode Inc. incurred a net operating loss of S500,000 in 2018. Combined income for 2016 and 2017 was $350,000. Rode elects the carryback option. Required: Prepare the journal entries to record the benefits the loss carryback and loss carryforward assuming an income tax rate of 40% for all years. Income tax refund receivable Deferred tax asset-NOL carryforward 140,000 60,000 Income Tax benefits from NOL carryback Income tax benefits from NOL carryforward 140,000 60,000 4. Valuation allowance of deferred tax assets The two objectives of accounting for income tax include a) recognition of income tax payable or