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*E19.26 (LO 6) (Carryback and Carryforward of NOL, No Valuation Account, No Temporary Differences) The pretax financial income (or loss) figures for Dan Lynch Company
*E19.26 (LO 6) (Carryback and Carryforward of NOL, No Valuation Account, No Temporary Differences) The pretax financial income (or loss) figures for Dan Lynch Company are as follows. 2015 2016 $160,000 250,000 1820 2017 80,000 2018 (160,000) 2019 (380,000) 2020 120,000 2021 100,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2015 and 2016, and a 20% tax rate for the remaining years. Instructions Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Dan Lynch Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
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