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e I https://newconnect.mheducation.com/flow/connect.html Saved Help Save & Exit Subm Check my work During 2018, its first year of operations, Baginski Steel Corporation reported a net operating loss of $480,000 for financial reporting and tax purposes. The enacted tax rate is 30%. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward. 2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the net operating loss. Complete this question by entering your answers in the tabs below. Required 1 Required 2 benefit of the net operating loss. Assume the weight of available Prepare the journal entry to recognize the income tax evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field your answers in thousands.) View transaction list Journal entry worksheet Record 2018 income tax benefit from operating loss. Prex 8of 2 Next

Explanation / Answer

1 Deferred tax asset 144000 =480000*30%         Income tax benefit—Operating loss 144000 2 Operating loss before income taxes -480000 Income tax benefit—net operating loss 144000 Net loss -336000

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