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Exercise 19-24 (Part Level Submission) Sheffield Inc. reports the following pretax income (loss) for both book and tax purposes. Assume the carryback provision is used
Exercise 19-24 (Part Level Submission) Sheffield Inc. reports the following pretax income (loss) for both book and tax purposes. Assume the carryback provision is used where possible for a net operating loss.) Year 2015 2016 2017 2018 Pretax Income (Loss) $112,000 93,000 (302,000) 127,000 Tax Rate 40 % 40% 45 % 45 % The tax rates listed were all enacted by the beginning of 2015. (a) Your answer is partially correct. Try again. Prepare the journal entries for years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half 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 o for the amounts.) Date Account Titles and Explanation Debit Credit 2015 Income Tax Expense Income Tax Payable 2016 Income Tax Expense Income Tax Payable UUUU 37200 2017 Income Tax Refund Receivable Deferred Tax Asset Benefit Due to Loss Carryback Benefit Due to Loss Carryforward (To record refund.) Allowance to Reduce Deferred Tax Asset to Expected (To record allowance.) 2018 Income Tax Expense Income Tax Payable Hot Deferred Tax Asset (To record income taxes.) (To adjust allowance.) Click if you would like to Show Work for this question: Open Show Work
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