Operating loss carryback

Question

Apr 3, 2007, 03:44 PM

kea2jsa

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Join Date: Apr 2007

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Operating loss carryback

Wynn Sheet Metal reported an operating loss of $100,00 for financial reporting and tax purposes in 2006. The enacted tax rate is 40%. Taxable income, tax rates and income taxes paid in Wynn's first four years of operations were as follows:

2002 $60,000 30% $18,000
2003 $70,000 30% $21,000
2004 $80,000 40% $32,000
2005 $60,000 45% $27,000

Prepare the journal entry to recognize the income tax benefit of the opearting loss. Wynn elects the carryback option.

Answers

Apr 3, 2007, 10:55 PM	#2

CaptainForest Finance & Accounting Expert Join Date: Nov 2005 Location: Canada Posts: 3,658	What do YOU think the answers are?

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