The pretax financial income (or loss) figures for Jenny Spangler Company are as follows. 2015 $160,000 2016 250,000 2017 80,000 2018 (160,000 ) 2019 (380,000 ) 2020 120,000 2021 100,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
The pretax financial income (or loss) figures for Jenny Spangler Company are as follows. 2015 $160,000 2016 250,000 2017 80,000 2018 (160,000 ) 2019 (380,000 ) 2020 120,000 2021 100,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
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The pretax financial income (or loss) figures for Jenny Spangler Company are as follows.
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years.
Prepare thejournal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
|
2015
|
$160,000 | ||
|
2016
|
250,000 | ||
|
2017
|
80,000 | ||
|---|---|---|---|
|
2018
|
(160,000 | ) | |
|
2019
|
(380,000 | ) | |
|
2020
|
120,000 | ||
|
2021
|
100,000 |
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years.
Prepare the
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