Provide the entry to recognize the tax benefit

Reference no: EM131920731

Problem

In 2016, Progressive Corp had a $24 million net operating loss in 2016 (for both tax and financial reporting purposes). Progressive reported taxable income of $20 million in 2015 and reported taxable income of $2 million in 2014. The enacted tax rate for all three years (2014 - 2016 is 15%. Progressive elects the carryback option for this NOL.

Provide the entry to recognize the tax benefit at the end of 2016. Prepare the journal entry to recognize the income tax.

Reference no: EM131920731

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