Big Bear Sporting Goods opened in 2015. They reported sales revenue of $395,000 and expenses of $445,000. There are no permanent or temporary differences, so the book loss and taxable loss will be the same. Big Bear plans on carrying forward the net operating loss (NOL). Assuming a 32% tax rate, what is the necessary journal entry in 2015 to record the NOL carryforward? A.

Deferred Tax Asset 126,400 Income Tax Benefit 126,400

B.

Income Tax Refund Receivable 16,000 Income Tax Benefit 16,000

C.

Income Tax Refund Receivable 126,400 Income Tax Benefit 126,400

D.

Deferred Tax Asset 16,000 Income Tax Benefit 16,000