8 Murray Imported Provisions, Inc. reported pretax accounting income equal to its taxable income, as presented below 1(Click the icon to view the income data.) All tax changes are enacted into law as of the beginning of the year. All tax rate changes are not known until the year of change. Murray elects the carryback/ carryforward option for all net operating losses. For the losses noted above, management concluded that it is more likely than not that the benefits of the net operating losses will be fully realizable in the future Read the requirements Requirement a. Prepare the journal entries necessary to record the tax provisions for years 4 through 8. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required, select "No Entry Required" on the first line of the Account column and leave all other cells blank.) Begin by preparing the entry, if needed, to record the portion of the year 4 NOL carried back. Year 4 Account (1) Income Tax Refund Receivable (2) Income Tax Benefit (3) (4) Prepare the entry, if needed, to record the portion of the year 4 NOL carried forward. Year 4 Account (5) Defevrec Tax Asset Tax Benei (6)Tncame (7) (8) Prepare the entry, if needed, to record the tax rate change adjustment in year 5. Year 5 Account ncome Tax ExpRnse (9) Asset (10) eferved Tax (11) (12) Prepare the entry, if needed, to record the tax provision for year 5. Year 5 Account Lome Tax Expense (13) (14) D-eferrr c Tax Asset (15) (16) Prepare the entry, if needed, to record the tax provision for year 6 Year 6 Account (17) neme Tax EYpense (18) Deferred Tax As sed (19) (20) Prepare the entry, if needed, to record the tax provision for year 7 Year 7 Account (21) none Ta Expense (22) pefcrred Tax Asset (23)Inconme Taxes Payable (24) Begin by preparing the entry, if needed, to record the portion of the year 8 NOL carried back. Year 8 Account (25) ncoe Tax Refond Receivaule (26) Tncome Tay Bcnefit (27) (28) Prepare the entry, if needed, to record the portion of the year 8 NOL carried forward. Year 8 Account (29) Deferred Tax AS set (30) Tnonme Tax B-enefit (31) (32) Requirement b. Prepare a partial income statement for years 4 through 8. Select the labels and complete year 4, then complete years 5 through 8. (Use parentheses or a minus sign for an expense or a loss.) Review the journal entries prepared in Requirement a. Year 8 Year 7 Year 6 Year 5 Year 4 (33)nome Loss Baare Tax (34) ToxExecnse Benefi (35) Net Incanme Loss Requirement c. Compute the effective tax rate for years 4 through 8. (Use a minus sign your answers to the nearest tenth of a percent, X.X%.) arentheses for a tax benefit. Round Year 8 Year 7 Year 6 Year 5 Year 4 % % Effective tax rate 1: Data Table Income (Loss) Tax Rate Before Tax Year 35% 58,000 1 40% 73,000 2 40% 54,000 3 40% (280,000) 4 35% 45,000 35% 50,000 6 35% 80,000 7 40% (360,000) 8 38% 28,000 9 38% 35,000 10 2: Requirements a. Prepare the journal entries necessary to record the tax provisions for years 4 through 8. b. Prepare a partial income statement for years 4 through 8. c. Compute the effective tax rate for years 4 through 8. 8 Murray Imported Provisions, Inc. reported pretax accounting income equal to its taxable income, as presented below 1(Click the icon to view the income data.) All tax changes are enacted into law as of the beginning of the year. All tax rate changes are not known until the year of change. Murray elects the carryback/ carryforward option for all net operating losses. For the losses noted above, management concluded that it is more likely than not that the benefits of the net operating losses will be fully realizable in the future Read the requirements Requirement a. Prepare the journal entries necessary to record the tax provisions for years 4 through 8. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required, select "No Entry Required" on the first line of the Account column and leave all other cells blank.) Begin by preparing the entry, if needed, to record the portion of the year 4 NOL carried back. Year 4 Account (1) Income Tax Refund Receivable (2) Income Tax Benefit (3) (4) Prepare the entry, if needed, to record the portion of the year 4 NOL carried forward. Year 4 Account (5) Defevrec Tax Asset Tax Benei (6)Tncame (7) (8) Prepare the entry, if needed, to record the tax rate change adjustment in year 5. Year 5 Account ncome Tax ExpRnse (9) Asset (10) eferved Tax (11) (12) Prepare the entry, if needed, to record the tax provision for year 5. Year 5 Account Lome Tax Expense (13) (14) D-eferrr c Tax Asset (15) (16) Prepare the entry, if needed, to record the tax provision for year 6 Year 6 Account (17) neme Tax EYpense (18) Deferred Tax As sed (19) (20) Prepare the entry, if needed, to record the tax provision for year 7 Year 7 Account (21) none Ta Expense (22) pefcrred Tax Asset (23)Inconme Taxes Payable (24) Begin by preparing the entry, if needed, to record the portion of the year 8 NOL carried back. Year 8 Account (25) ncoe Tax Refond Receivaule (26) Tncome Tay Bcnefit (27) (28) Prepare the entry, if needed, to record the portion of the year 8 NOL carried forward. Year 8 Account (29) Deferred Tax AS set (30) Tnonme Tax B-enefit (31) (32) Requirement b. Prepare a partial income statement for years 4 through 8. Select the labels and complete year 4, then complete years 5 through 8. (Use parentheses or a minus sign for an expense or a loss.) Review the journal entries prepared in Requirement a. Year 8 Year 7 Year 6 Year 5 Year 4 (33)nome Loss Baare Tax (34) ToxExecnse Benefi (35) Net Incanme Loss Requirement c. Compute the effective tax rate for years 4 through 8. (Use a minus sign your answers to the nearest tenth of a percent, X.X%.) arentheses for a tax benefit. Round Year 8 Year 7 Year 6 Year 5 Year 4 % % Effective tax rate 1: Data Table Income (Loss) Tax Rate Before Tax Year 35% 58,000 1 40% 73,000 2 40% 54,000 3 40% (280,000) 4 35% 45,000 35% 50,000 6 35% 80,000 7 40% (360,000) 8 38% 28,000 9 38% 35,000 10 2: Requirements a. Prepare the journal entries necessary to record the tax provisions for years 4 through 8. b. Prepare a partial income statement for years 4 through 8. c. Compute the effective tax rate for years 4 through 8