Refer to Practice 16–17. Assume that the net operating loss in 2011 was $150,000 instead of $80,000. Make the journal entry necessary to record

(1) Any net operating loss (NOL) carryback in 2011 and

(2) Any net operating loss (NOL) carryforward created in 2011.

The enacted tax rate for future years is 35%. State any assumptions you must make.

Data From Practice 16–17.

Net Operating Loss Carryback
Taxable income and income tax rates for 2009–2011 for the company have been as
follows:
Taxable Income Tax Total
Year Income Rate Tax Paid
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75,000 25% $18,750
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 30 15,000
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80,000) 35 0
Make the journal entry necessary to record any net operating loss (NOL) carryback
in 2011.