#$2$

The pretax accounting income $($loss$)$ for the Katlyn Cascayan Company is as follows for the years indicated:The pretax accounting income $($loss$)$ for the Katlyn Cascayan Company is as follows for the years

indicated:

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or Transmission is Strictly Prohibited!

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or Transmission is Strictly Prohibited!

$20$X$2$ was Katlyn Cascayan's first year of operations. There are no other differences between

pretax accounting income and taxable income for the years indicated. Katlyn Cascayan elects the

loss carryback option.

This Examination Has Been Prepared by the House of Timujin and Subject to Copy Right Laws. Unauthorized Copying, Downloading, Distribution

or Transmission is Strictly Prohibited!

Required:

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or Transmission is Strictly Prohibited!

Prepare the journal entries for the years $208$ and $209$ to record income tax expense

$($benefit$)$ and income tax payable $($refundable$)$ and the tax effect of the loss carryback and

carryforward assuming that at the end of $208$ the benefits of the loss carryforwards are

judged more likely than not to be realized in the future.

Using the assumption in requirement #$1$ above prepare the Income Tax section of the $20$X$8$

and $20$X$9$ income statement beginning with the line Income$/$Loss before Income Tax

Expense.

Using the assumption in requirement #$3$ above prepare the Income tax section of the $20$X$8$

and $20$X$9$ income statement beginning with the line Income$/$Loss before Income Tax

Expense.

This Examination Has Been Prepared by the House of Timujin and Subject to Copy Right Laws. Unauthorized Copying, Downloading, Distribution

or Transmission is Strictly Prohibited!

Please Use Format Below to Answer the Required Entries: