Prepare the journal entry to record tobacs income taxes

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Reference no: EM13848639

Tobac Company reported a pretax operating loss of 450,000 for financial reporting and tax purposes in 2011. The enacted tax rate is 40% for 2011 and subsequent years. Assume that Tobac requests a refund of taxes already paid by electing a loss carryback. Taxable income, tax rates, and income taxes paid in Tobac's first four years of operations were as follows: Taxable income Tax rate Taxes paid 2007 $30,000 30% $9,000 2008 35,000 30% 10,500 2009 42,000 35% 14,700 2010 40,000 40% 16,000

Required:

1.) Prepare the journal entry to record Tobac's income taxes for the year 2011. Show well-labeled computations.

2.) Compute Tobac's net loss for 2011.

Reference no: EM13848639

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