Exercise 19-23 (Part Level Submission) Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Pretax Income (Loss) Year 2015 2016 2017 2018 $132,000 89,000 (263,000) 227,000 Tax Rate 34 % 34 % 38 % 38 % The tax rates listed were all enacted by the beginning of 2015 Your answer is correct. Prepare the journal entries for the years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryback and carryforward, assuming that at the end of 2017 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (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 0 for the amounts.) Date Account Titles and Explanation Debit 2015 Income Tax Expense 44880 Income Tax Payable 44880 2016 Income Tax Expense 30260 Income Tax Payable 30260 2017 Income Tax Refund Receivable 75140 Deferred Tax Asset 15960 Benefit Due to Loss Carryback 75140 Benefit Due to Loss Carryforward 15960 2018 Income Tax Expense 86260 Deferred Tax Asset 15960 Income Tax Payable 0300 Your answer is correct. Assuming that at the end of 2017 the benefits of the loss carryforward are judged more likely than not to be realized in the future, prepare the income tax section of the 2017 ncome statement, beginning with the line "Operating loss before income taxes." (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g Pina Inc. Income Statement (Partial) For the Year Ended December 31, 2017 V Operating Loss before Income Taxes 263000 Income Tax Benefit Benefit Due to Loss Carryback 75140 Benefit Due to Loss Carryforward V 15960 91100 Net Income/ (Loss) -171900 Prepare the journal entries for 2017 and 2018, assuming that based on the weight of available evidence, it is more likely than not that one-fourth of the benefits of the loss carryforward will not be realized. (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 0 for the amounts.) Date Account Titles and Explanation Credit 2017 Income Tax Refund Receivable 75140 Deferred Tax Asset Benefit Due to Loss Carryback Benefit Due to Loss Carryforward (To record refund.) Benefit Due to Loss Carryforward 75140 Allowance to Reduce Deferred Tax Asset to Expected (To record allowance.) 2018 Income Tax Expense Income Tax Payable Deferred Tax Asset