Stellar Corporation had the following tax information. Year Taxable Income Tax R

Question

Stellar Corporation had the following tax information.

Year

Taxable Income

Tax Rate

Taxes Paid

In 2018, Stellar suffered a net operating loss of $478,000, which it elected to carry back. The 2018 enacted tax rate is 32%.

Prepare Stellar’s entry to record the effect of the loss carryback. (Credit account titles are automatically indented when 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.)

Account Titles and Explanation

Debit

Credit

Year

Taxable Income

Tax Rate

Taxes Paid

2015 $295,000 38% $112,100 2016 325,000 33% 107,250 2017 401,000 33% 132,330

Explanation / Answer

General Journal Debit Credit Income Tax Refund Receivable $157,740 Benefit Due to Loss Carryback[($478,000 - 325,000) x 33% + $107,250] $157,740

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.