Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for

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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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Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

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Question Posted: Jan 21, 2014 04:46 AM

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Tally & Co. incurred a pretax operating loss of $100,000 in its first year of operations for

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Deferred Tax Asset 100000 x 25 2...View the full answer

Intermediate Accounting

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