Question - Monty Corporation had the following tax information.
|
Year
|
Taxable Income
|
Tax Rate
|
Taxes Paid
|
|
2015
|
$304,000
|
38%
|
$115,520
|
|
2016
|
320,000
|
33%
|
105,600
|
|
2017
|
401,000
|
33%
|
132,330
|
In 2018, Monty suffered a net operating loss of $482,000, which it elected to carry back. The 2018 enacted tax rate is 32%.
Prepare Monty's entry to record the effect of the loss carryback.