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Question
Colorado Company has provided you the following information:
Colorado has decided to use the loss carryback and carryforward provision as a result of the year 2014 loss. The enacted tax rate remains at 40% after year 2014. Colorado has determined that a valuation allowance is not necessary.
Requirement:
Prepare the journal entry on December 31, 2014 to record the carryback and carryforward decision.
Answer
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