A corporation had a loss in 2019. The corp had the option to carry back the loss or carry the loss forward.
The corporation decided to carry the loss back to a year with profit.
Schedule 4 “Corporation Loss Continuity and Application” was completed.
The CRA received the application and successfully processed the loss carry back to a previous tax year resulting in a refund to the corporation.
The journal entry I have is:
Tax expense XXX
Does anyone have any thoughts/comments?