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Business, 15.11.2019 03:31 Xaviiier

Cabot company reported a pretax operating loss of $50,000 for financial reporting and tax purposes in 2018. the enacted tax rate is 40% for 2018 and subsequent years. assume that cabot requests a refund of taxes already paid by electing a loss carryback. taxable income, tax rates, and income taxes paid in cabot's first four years of operations were as follows: taxable tax taxes income rates paid 2014 $30,000 30% $9,000 2015 35,000 30% 10,500 2016 42,000 35% 14,700 2017 40,000 40% 16,000 required: (1) prepare the journal entry to record cabot's income taxes for the year 2018. show well-labeled computations. (2) compute cabot's net loss for 2018.

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Cabot company reported a pretax operating loss of $50,000 for financial reporting and tax purposes i...
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