Net operating loss (NOL) carrybacks are only allowed in special circumstances. Specifically, property and casualty...
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Net operating loss (NOL) carrybacks are only allowed in special circumstances. Specifically, property and casualty insurance companies and certain farm-related companies are allowed to use NOL carrybacks Sunshine Co. is one of such companies allowed to use NOL carrybacks. Sunshine reported a net operating loss of $128,000 for GAAP purposes and tax purposes in 2023 . The enacted tax rate for 2023 and the foreseeable future is 25%. The following information relates to Sunshine's first four years of operations. A. Prepare Sunshine's journal entry/entries to record income taxes for 2023. B. What effect, if any, did income taxes have on Sunshine's 2023 income statement
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Net operating loss (NOL) carrybacks are only allowed in special circumstances. Specifically, property and casualty insurance companies and certain farm-related companies are allowed to use NOL carrybacks Sunshine Co. is one of such companies allowed to use NOL carrybacks. Sunshine reported a net operating loss of $128,000 for GAAP purposes and tax purposes in 2023 . The enacted tax rate for 2023 and the foreseeable future is 25%. The following information relates to Sunshine's first four years of operations. A. Prepare Sunshine's journal entry/entries to record income taxes for 2023. B. What effect, if any, did income taxes have on Sunshine's 2023 income statement 