Exercise 19-10 Felicia Rashad Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2006 through 2014 as follows Income (Loss 2006 2007 2008 2009 2010 2011 2012 2013 2014 $33,640 46,400 19,720 55,680 (174,000 ) 104,400 34,800 121,800 (69,600 ) Tax Rate 30 % 30 % 35 % 50 % 40 % 40 % 40 % 40 % 45 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad has been in business. Assume the carryback provision is employed for net operating losses. 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 2010? (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record carryback.) (To record carryforward.) Indicate what the income tax expense portion of the income statement for 2010 should look like. Assume al income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Felicia Rashad Corporation Income Statement (Partial) Year ended December 31, 2010 What entry for income taxes should be recorded in 2011? (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit