Insure Corporation reported a net operating loss of $25 million for financial reporting and tax...
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Insure Corporation reported a net operating loss of $25 million for financial reporting and tax purposes. Taxable Income last year and the previous year, respectively, was $20 million and $15 million. The enacted tax rate each year is 25%. Assume that Insure qualifies as a type of company that is allowed to carry back an NOL to two prior taxable years, using the earllest year first. Prepare the journal entry to recognize the Income tax benefit of the net operating loss. (If no entry is required for a transaction/event, select "No Journal entry requlred" In the first account field. Enter your answers in whole dollars.) Answer is complete but not entirely correct. Transaction General Journal Debit Credit 1 Receivable - income tax refund 10 Income tax expense
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