(Two NOLs, No Temporary Differences, No Valuation Account, Entries and Income Statement) Felicia Rashad Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2009 through 2017 as follows. Income (Loss) Tax Rate 2009 $ 29,000 30% 2010 40,000 30 2011 17,000 35 2012 48,000 50 2013 (150,000) 40 2014 90,000 40 2015 30,000 40 2016 105,000 40 2017 (60,000) 45 Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.Instructions(a) What entry(ies) for income taxes should be recorded for 2013?(b) Indicate what the income tax expense portion of the income statement for 2013 should look like. Assume all income (loss) relates to continuing operations.(c) What entry for income taxes should be recorded in 2014?(d) How should the income tax expense section of the income statement for 2014 appear?(e) What entry for income taxes should be recorded in 2017?(f) How should the income tax expense section of the income statement for 2017 appear?
(Two NOLs, No Temporary Differences, No Valuation Account, Entries and Income Statement) Felicia Rashad Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2009 through 2017 as follows.
| Income (Loss) | Tax Rate | |
| 2009 | $ 29,000 | 30% |
| 2010 | 40,000 | 30 |
| 2011 | 17,000 | 35 |
| 2012 | 48,000 | 50 |
| 2013 | (150,000) | 40 |
| 2014 | 90,000 | 40 |
| 2015 | 30,000 | 40 |
| 2016 | 105,000 | 40 |
| 2017 | (60,000) | 45 |
Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
Instructions
(a) What entry(ies) for income taxes should be recorded for 2013?
(b) Indicate what the income tax expense portion of the income statement for 2013 should look like. Assume all income (loss) relates to continuing operations.
(c) What entry for income taxes should be recorded in 2014?
(d) How should the income tax expense section of the income statement for 2014 appear?
(e) What entry for income taxes should be recorded in 2017?
(f) How should the income tax expense section of the income statement for 2017 appear?
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