Prepare the journal entry to recognize the income tax


Airparts Corporation reported an operating loss of $21 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was $22 million and $17 million. The enacted tax rate each year is 40%. Prepare the journal entry to recognize the income tax benefit of the operating loss. Airparts elects the carryback option.

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Accounting Basics: Prepare the journal entry to recognize the income tax
Reference No:- TGS050640

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