Check my work 3 During its first year of operations, Nile.com reported a net ope

Question

Check my work 3 During its first year of operations, Nile.com reported a net operating loss of $6 million for financial reporting and tax purposes. The enacted tax rate is 25%. Prepare the journal entry to recognize the income tax benefit of the net operating loss. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) points View transaction list eBook Journal entry worksheet Print References Record the income tax benefit of the operating loss Note: Enter debits before credits Event General Journal Debit Credit

Explanation / Answer

Event General Journal Debit Credit 1 Deferred Tax Liability($6,000,000 * 25%) $1,500,000 Income Tax Benefit-Operating Loss $1,500,000

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