Question
Whispering Winds Corporation had the following tax information: Year---- Taxable Income----- Tax Rate ----Taxes Paid 2014--- $391,000 31%---- $121,210 2015--- 313,000 30%---- 93,900 2016--- 398,400
Whispering Winds Corporation had the following tax information:
Year---- | Taxable Income----- |
| Tax Rate | ----Taxes Paid |
2014--- | $391,000 |
| 31%---- | $121,210 |
2015--- | 313,000 |
| 30%---- | 93,900 |
2016--- | 398,400 |
| 30%--- | 119,520 |
In 2017, Whispering Winds suffered a net operating loss of $561,000, which it decided to carry back. The 2017 enacted tax rate is 25%.
1- Prepare Whispering Windss entry to record the effect of the loss carryback. (Credit account titles are automatically indented when the 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.)
Year---- | Account Titles and Explanation | ----Debit | -----Credit |
2017 (2 entries only)
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