Benoit Entity (BE) incurred $75,000 in tax losses for the current tax year ending on December 31, 20X7. BE's taxable income in 20X5 and 20X6 was respectively $40,000 and $35,000, The relevant tax rates were as follows: 30% in 20X2 and 35% in 20X3. In BE's jurisdiction, the tax legislation permits entities to carry back losses two years with the requirement to offset losses against the most recent period possible. What is BE's journal entry for 20X7?

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The Answer of Benoit Entity (BE) incurred $75,000 in tax losses for the current tax year ending on December 31, 20X7. BE's taxable income in 20X5 and 20X6 was respectively $40,000 and $35,000, The relevant tax rates were as follows: 30% in 20X2 and 35% in 20X3. In BE's jurisdiction, the tax legislation permits entities to carry back losses two years with the requirement to offset losses against the most recent period possible. What is BE's journal entry for 20X7?

Benoit Entity (BE) Incurred $75,000 in Tax Losses for the Current