Tobac Company reported a pretax operating loss of $50,000 for financial reporting and tax purposes in 2009. The enacted tax rate is 40% for 2009 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:
Required:
(1.) Prepare the journal entry to record Tobac's income taxes for the year 2009. Show well-labeled computations.
(2.) Compute Tobac's net loss for 2009.

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The Answer of Tobac Company reported a pretax operating loss of $50,000 for financial reporting and tax purposes in 2009. The enacted tax rate is 40% for 2009 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:
Required:
(1.) Prepare the journal entry to record Tobac's income taxes for the year 2009. Show well-labeled computations.
(2.) Compute Tobac's net loss for 2009.

Tobac Company Reported a Pretax Operating Loss of $50,000 for Financial