ACC $540$

Fall $2023$

Homework #$1$

The Mazy Company had several profitable years prior to $2023.$ Unfortunately, in $2023$ they suffered an operating loss of $$700,000.$ For the years prior to $2023,$ Mazy's performance is as shown below.

$\backslash$table$[[,$Net Income,Tax Rate$],[2020,500,000,40\%],[2021,200,000,25\%],[2022,250,000,25\%],[$Future years,,$25\%]]$

Assume that Mazy meets the criteria for a being allowed to carryback a loss. Prepare the journal entry to record their $2023$ tax expense.