Exercise 113 In 2018, its first year of operations, Kimble Corp. has a $740,000 net operating loss when the tax rate is 35%. In 2019, Kimble has $290,000 taxable income and the tax rate remains 35%. Assume the management of Kimble Corp. thinks that it is more likely than not that the loss carryforward will not be realized in the near future because it is a new company (this is before results of 2019 operations are known). What are the entries in 2018 to record the tax effects of the loss carryforward? (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To recognize benefit of loss carryforward) (To record allowance amount) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT What entries would be made in 2019 to record the current and deferred income taxes and to recognize the loss carryforward? (Assume that at the end of 2019 it is more likely than not that the deferred tax asset will be realized.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record current and deferred income taxes) (To eliminate allowance and recognize loss carryforward) SHOW LIST OF ACCOUNTS