Response to the following problem:
Conlin Corporation had the following tax information.
|
Year
|
Taxable Income
|
Tax Rate
|
Taxes Paid
|
|
2012
|
$300,000
|
35%
|
$105,000
|
|
2013
|
$325,000
|
30%
|
$ 97,500
|
|
2014
|
$400,000
|
30%
|
$120,000
|
In 2015, Conlin suffered a net operating loss of $480,000, which it elected to carry back. The 2015 enacted tax rate is 29%. Prepare Conlin's entry to record the effect of the loss carryback.