The financial history below shows the income and losses for Irontree Company for the 10-year period 20022011.

The financial history below shows the income and losses for Irontree Company for the 10-year period 2002–2011.

Assume that no adjustments to taxable income are necessary for purposes of the NOL carryback and that the company elects to use the carryback provisions of the tax code.

Instructions:
1. Given the foregoing information, compute the amount of income tax refund for each year as a result of each NOL carryback and the amount of the carryforward (if any).
2. How would the NOL carryforward as of December 31, 2010, be reflected in the 2010 financial statements?
3. Calculate the amount of income tax paid, showing the benefit of the NOL carryforward, for the years 2008 and 2011.
4. For 2011, give the entry (or entries) to record income taxes, assuming that the deferred tax asset stemming from the 2010 NOL carryforward was fully recognized in2010.

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Taxable and Pretax Financial Income (before NOL) Year Income Tax Rate Income Tax Paid $6.816 8.448 8.610 $ 14,200 2003 2004 2005 2006 2007 17,600 20,500 (29.300) 13,900 (25,100) 23,500 40,650 (64,400) 72,000 48% 48 42 42 42 5,838 38 38 38 15,447 2010 2011