Colorado company has decided to use the loss

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Reference no: EM13884699

Colorado Company has provided you the following information.

Year Taxable income Income tax rate

2014 $390,000 35%

2015 $320,000 37%

2016 $400,000 40%

2017 ($1,200,000) 40%

Colorado Company has decided to use the loss carryback and carryforward provision as a result of the year 2017 loss. The enacted tax rate remains at 40% after year 2017. Colorado Company has determined that a valuation allowance is not necessary.

Prepare the journal entry on December 31, 2017 to record the carryback and carryforward decision.

Reference no: EM13884699

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