Conlin Corporation had the following tax information.
|
Year |
Taxable Income |
Tax Rate |
Taxes Paid |
|
2010 |
$300,000 |
35% |
$105,000 |
|
2011 |
$325,000 |
30% |
$ 97,500 |
|
2012 |
$400,000 |
30% |
$120,000 |
In 2013, Conlin suffered a net operating loss of $480,000, which it elected to carry back. The 2013 enacted tax rate is 29%. Prepare Conlin’s entry to record the effect of the loss carryback.