Tobac Company reported an operating loss of $133,000 for financial reporting and tax purposes in...
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Accounting
Tobac Company reported an operating loss of $133,000 for financial reporting and tax purposes in 2016. The enacted tax rate is 40% for 2016 and all future years. Assume that Tobac elects a loss carryback. No valuation allowance is needed for any deferred tax assets. Taxable income, tax rates, and income taxes paid in Tobac's first four years of operations were as follows:
TaxableTax Taxes income rates paid 2012 $ 31,000 30% $ 9,300 2013 $36,000 30% $10,800 2014 $43,000 35% $15,050 2015 $41,000 40%$16,400 Required 1. Prepare a compound journal entry to record Tobac's tax provision for the year 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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