Business, 19.03.2021 01:00 jess1547

obac Company reported an operating loss of $122,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25% for 2021 and all future years. Assume that Tobac operates in an industry for which NOL carryback is allowed and elects a loss carryback. No valuation allowance is needed for any deferred tax assets. Taxable income, tax rates, and income taxes paid in Tobac's first four years of operations were as follows: Taxable income Tax rates Taxes paid 2017 $ 20,000 30 % $ 6,000 2018 $ 25,000 30 % $ 7,500 2019 $ 32,000 35 % $ 11,200 2020 $ 30,000 40 % $ 12,000 Required: 1. Prepare a compound journal entry to record Tobac's tax provision for the year 2021. 2. Compute Tobac's net loss for 2021.

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obac Company reported an operating loss of $122,000 for financial reporting and tax purposes in 2021...

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