19-5 (Part Level Submission)

Buffalo Inc. reported the following pretax income (loss) and related tax rates during the years 2013-2019.

Pretax Income (loss)

Tax Rate

2013$42,90030%201423,10030%201550,50030%201681,20040%2017(191,600)45%201863,10040%2019108,30035%

Pretax financial income (loss) and taxable income (loss) were the same for all years since Buffalo began business. The tax rates from 2016-2019 were enacted in 2016.

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(a)

Prepare the journal entries for the years 2017-2019 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryback and carryforward. Assume that Buffalo elects the carryback provision where possible and expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

2017

(To record carryback.)

(To record carryforward.)

2018

2019

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