Thepretaxfinancial income (or loss)figures for Dan Lynch Companyare 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 45% tax rate for 2015 and 2016, and a 20% tax rate for the remaining years. Instructions Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Dan Lynch Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
Thepretaxfinancial income (or loss)figures for Dan Lynch Companyare 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 45% tax rate for 2015 and 2016, and a 20% tax rate for the remaining years. Instructions Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Dan Lynch Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
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Thepretaxfinancial income (or loss)figures for Dan Lynch Companyare 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 45% tax rate for 2015 and 2016, and a 20% tax rate for the remaining years.
Instructions
Prepare the
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