During 2024, its first year of operations, Cougar Corporation reported a net operating loss of...
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Accounting
During 2024, its first year of operations, Cougar Corporation reported a net operating loss of $360,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests that future taxable income will be sufficient to benefit from future deductible amounts arising from the net operating loss carryforward. 2. During 2025, Cougar reported income of $200,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Prepare the journal entry to recognize Cougar's 2025 tax expense or tax benefit
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