Trenton Co. incurred a net operating loss of $850,000 in 2014. Combined income of 2012 and 2013 was $650,000. The tax rate for all years is 30%. Trenton elects the carry back option.
- Prepare journal entries to record the benefit of loss carry back and loss carry forward oprion
- Prepare entries necessay at end of 2014 assuming not ll carry forward will be realized in future.