Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for
Question:
Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for both financial reporting and income tax purposes. However, it expects to be profitable in the future. Its expected future income tax rate is 25%.
Prepare Tally & Co.’s journal entry to record its operating loss carryforward.
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Deferred Tax Asset 100000 x 25 2...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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