S & C Company reported income before taxes of $111,000 for the years 2013, 2014, and 2015. In 2016 they experienced a loss of $222,000. S & C had a tax rate of 30% in 2013 and 2014, and a rate of 40% is 2015 and 2016. The company elects to carry back the loss. What is the necessary journal entry to record the NOL carryback in the year of the loss?

A)
Income Tax Refund Receivable
66,600

Income Tax Benefit

66,600

B)
Income Tax Refund Receivable
77,700

Income Tax Benefit

77,700

C)
Income Tax Refund Receivable
88,800

Income Tax Benefit

88,800

D)
Income Tax Refund Receivable
111,000

Income Tax Benefit

111,000

Answer: B
Explanation: B) (111,000 × 30%) + (111,000 × 40%) = $77,700. NOL carryback is only 2 years to 2014 and 2015.