Larkspur Inc. incurred a net operating loss of $520,000 in 2020. Combined income for 2018 and...

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Larkspur Inc. incurred a net operating loss of $520,000 in 2020. Combined income for 2018 and 2019 was $364,000. The tax rate for all years is 20%. Larkspur elects the carryback option. Prepare the journal entries to record the benefits of the loss carryback and the loss carryforward. Larkspur expects to return to profitability in 2021. (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 O for the amounts.) Account Titles and Explanation Debit Credit (To record loss carryback) (To record loss carryforward) Larkspur Inc. incurred a net operating loss of $520,000 in 2020. Combined income for 2018 and 2019 was $364,000. The tax rate for all years is 20%. Larkspur elects the carryback option. Prepare the journal entries to record the benefits of the loss carryback and the loss carryforward. Larkspur expects to return to profitability in 2021. (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 O for the amounts.) Account Titles and Explanation Debit Credit (To record loss carryback) (To record loss carryforward)

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