Question

6:32 E . WP = SP20 3270 Algimants Ch 19: Homework. Bishop Ch 19: Homework - Bishop Home Testbook Send to detek Prev Wiley Accounting Question 10 View Policies Current Attempt in Progress Splish Brothers Corporation had the following tax information. W PLUS Support Year Th eme Tuitate Tres Paid 35% 3,700 $262.000 305 300 2019 30 30 378.000 112.00 In 2021, Splish Brothers suffered a net operating loss of $451,200, which it elected to carryback. The 2021 enacted tax rate is 29%. Prepare Splish Brothers's entry to record the effect of the loss carryback. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Tiles and Explanation Textbook and Media List of Accounts Shastram

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Solution: Naming Convention and format is is not available, it can be slightly different per question format: Ignore the explanation line in blue while putting answer in question format: NOL is allowed to carryback upto 2 years as per rules prior 2018. Effective from 2018, NOL is only carryforwarded, carryback is not allowed. As per Tax rule prior 2018: Jounal entry Credit Account title and explaination Debit Income tax refund - Receivable (451200)*30% 135360 Income Tax Expense or Benefit (To recognize the income tax benefit of the net operating loss in 2021) | 135360 As per Tax rule from 2018: Jounal entry Debit Credit Account title and explaination No entry No entry