Current Attempt in Progress

Kingbird Inc. incurred a net operating loss of $$400,000$ in $2025.$ Combined income for $2023$ and $2024$ was $$280,000.$ The tax rate for all years is $20\%.$ Kingbird elects the carryback option.

Prepare the journal entries to record the benefits of the loss carryback and the loss carryforward. Kingbird expects to return to profitability in $2026.($List all debit entries before credit entries. 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 $0$ for th amounts.$)$

Account Titles and Explanation

Debit

Credit

$($To record loss carryback$)$

$($To record loss carryforward$)$