Big Bear Sporting Goods Opened in 2018 B) C) D)

Big Bear Sporting Goods opened in 2018. They reported sales revenue of $375,000 and expenses of $460,000. There are no permanent or temporary differences, so the book loss and taxable loss will be the same. Big Bear plans on carrying forward the net operating loss (NOL) . Assuming a 32% tax rate, what is the necessary journal entry in 2018 to record the NOL carryforward?

A) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Refund Receivable } & 120,000 & \\\hline \text { Income Tax Benefit } & & 120,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | l | } \hline \text { Deferred Tax Asset } & 120,000 & \\\hline \text { Income Tax Benefit } & & 120,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Refund Receivable } & 27,200 & \\\hline \text { Income Tax Benefit } & & 27,200 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Deferred Tax Asset } & 27,200 & \\\hline \text { Income Tax Benefit } & & 27,200 \\\hline\end{array}$$