Larkspur Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2023 $312,000 35 % $109,200 2024 338,000 30 101,400 2025 416,000 30 124,800 In 2026, Larkspur suffered a net operating loss of $499,200, which it elected to carryback. The 2026 enacted tax rate is 29%.
Larkspur Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2023 $312,000 35 % $109,200 2024 338,000 30 101,400 2025 416,000 30 124,800 In 2026, Larkspur suffered a net operating loss of $499,200, which it elected to carryback. The 2026 enacted tax rate is 29%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Larkspur Corporation had the following tax information.
Year
Taxable Income
Tax Rate
Taxes Paid
2023
$312,000
35 %
$109,200
2024
338,000
30
101,400
2025
416,000
30
124,800
In 2026, Larkspur suffered a net operating loss of $499,200, which it elected to carryback. The 2026 enacted tax rate is 29%.
Prepare Larkspur's entry to record the effect of the loss carryback. (List debit entry before credit entry. 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 Titles and Explanation
Debit
Credit
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