Bridgeport Corporation had the following tax information: Year Taxable...
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Accounting
Bridgeport Corporation had the following tax information:
Year
Taxable Income
Tax Rate
Taxes Paid
2017
$391,000
31%
$121,210
2018
313,000
30%
93,900
2019
399,700
30%
119,910
In 2020, Bridgeport suffered a net operating loss of $556,000, which it decided to carry back. The 2020 enacted tax rate is 25%. Prepare Bridgeports entry to record the effect of the loss carryback. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Year
Account Titles and Explanation
Debit
Credit
2020
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Answer & Explanation
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