Accounting 304, chapter 19.

Accounting for Net Operating Losses

Use ariswers Vaughn Inc. reported the following pretax income (loss) and related tax rates during the years 2013-2019 Pretax Income (loss) Tax Rate 30% 30% 30% 40 % 45 % 40 % 35%. ACCOUNTI 2013 2014 2015 2016 2017 2018 2019 $43,800 23,100 53,500 82.600 (167,700 ) 72,300 107.700 Pretax financial income (loss) and taxable income (loss) were the same for all years since Vaughn began business. The tax rates from 2016-2019 were enacted in 2016 Choose Math 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 Vaughn 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 O for the amounts.) Date Account Titles and Explanation Debit Credit