Answer
The entries shall be;
Debit Tax refund receivable (Income) account 144,000
(Cr) Credit benefit due to loss carryback account 144,000
Please see working below.
Work Step by Step
120,000+(480,000-400,000)*30% = 144,000
Intermediate Accounting (16th Edition)
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
1118743202
ISBN 13:
978-1-11874-320-1
Chapter 19 - Accounting for Income Taxes - Review and Practice - Brief Exercises - Page 1094: BE19-12
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