Net Operating Loss Carryback
Taxable income and income tax rates for 2006–2008 for the company have been as follows:
|
|
Taxable |
Income Tax |
Total |
|
Year |
Income |
Rate |
Tax Paid |
|
2006 |
$ 40,000 |
30% |
$12,000 |
|
2007 |
30,000 |
35 |
10,500 |
|
2008 |
(50,000) |
40 |
0 |
Make the journal entry necessary to record any net operating loss (NOL) carryback in 2008.