Accounting for income taxes question:
Rode Inc. incurred a net operating loss of $556,700 in 2014. Combined income for 2012 and 2013 was $352,200. The tax rate for all years is 30%. Rode elects the carry back option. Assume that it is more likely than not that the entire net operating loss carry forward will not be realized in future years.
Prepare all the journal entries necessary at the end of 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)