8.

Please, provide step by step solution for part B

Splish Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $57,600 25 % 2016 (84,000) 20 % 2017 108,000 20 % 2018 36,000 20 % 2019 126,000 20 % 2020 (72,000) 25 % 2021 154,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Splish has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. What entries for income taxes should be recorded for 2016? (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 for the amounts.) Account Titles and Explanation Debit Credit Deferred Tax Asset 16,800 Income Tax Expense 16,800 (b) Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Splish Corporation Income Statement (Partial) $