Metlock Inc. incurred a net operating loss of $486,000 in 2025. The tax rate for all years is 30%. Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years. Prepare all the journal entries necessary at the end of 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when 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 (To record carryforward) Debit Credit
Metlock Inc. incurred a net operating loss of $486,000 in 2025. The tax rate for all years is 30%. Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years. Prepare all the journal entries necessary at the end of 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when 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 (To record carryforward) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Metlock Inc. incurred a net operating loss of $486,000 in 2025. The tax rate for all years is 30%. Assume that it is more likely than not
that the entire net operating loss carryforward will not be realized in future years.
Prepare all the journal entries necessary at the end of 2025. (List all debit entries before credit entries. Credit account titles are
automatically indented when 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
(To record carryforward)
(To record allowance)
Debit
Credit
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