Assume that Puritan Corp. operates in an industry for which NOL carryback is allowed. Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations:            2020 $ 353,000     2021   (596,000 )   2022   708,000         Puritan's tax rate is 37% for all years. Puritan elected a loss carryback.As of December 31, 2021. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback.   What did Puritan report on December 31, 2021, as the deferred tax asset for the NOL carryforward?

Question

Assume that Puritan Corp. operates in an industry for which NOL carryback is allowed. Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations:
 

         
2020 $ 353,000    
2021   (596,000 )  
2022   708,000    
 

  
Puritan's tax rate is 37% for all years. Puritan elected a loss carryback.
As of December 31, 2021. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback.

  
What did Puritan report on December 31, 2021, as the deferred tax asset for the NOL carryforward?

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