Big Bear Sporting Goods opened in 2022. They reported sales revenue of $375,000 and expenses of $460,000. There are no permanent or temporary differences, so the book loss and taxable loss will be the same. Big Bear plans on carrying forward the net operating loss (NOL). Assuming a 32% tax rate, what is the necessary journal entry in 2022 to record the NOL carryforward? Group of answer choices Deferred Tax Asset 27,200 Income Tax Benefit 27,200 Deferred Tax Asset 120,000 Income Tax Benefit 120,000 Income Tax Refund Receivable 120,000 Income Tax Benefit 120,000 Income Tax Refund Receivable 27,200 Income Tax Benefit 27,200
Big Bear Sporting Goods opened in 2022. They reported sales revenue of $375,000 and expenses of $460,000. There are no permanent or temporary differences, so the book loss and taxable loss will be the same. Big Bear plans on carrying forward the net operating loss (NOL). Assuming a 32% tax rate, what is the necessary journal entry in 2022 to record the NOL carryforward? Group of answer choices Deferred Tax Asset 27,200 Income Tax Benefit 27,200 Deferred Tax Asset 120,000 Income Tax Benefit 120,000 Income Tax Refund Receivable 120,000 Income Tax Benefit 120,000 Income Tax Refund Receivable 27,200 Income Tax Benefit 27,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Big Bear Sporting Goods opened in 2022. They reported sales revenue of $375,000 and expenses of $460,000. There are no permanent or temporary differences, so the book loss and taxable loss will be the same. Big Bear plans on carrying forward the net operating loss (NOL). Assuming a 32% tax rate, what is the necessary journal entry in 2022 to record the NOL carryforward?
Group of answer choices
| 27,200 | | |
| Income Tax Benefit | | 27,200 |
| Deferred Tax Asset | 120,000 | |
| Income Tax Benefit | | 120,000 |
| Income Tax Refund Receivable | 120,000 | |
| Income Tax Benefit | | 120,000 |
| Income Tax Refund Receivable | 27,200 | |
| Income Tax Benefit | | 27,200 |
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