Flounder Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:

		Accounting
		Income
Year		(Loss)			Tax Rate
2018		$125,000			25	%
2019		93,000			25	%
2020		(289,000	)		30	%
2021		218,000			30	%

The tax rates listed were all enacted by the beginning of 2018. Flounder reports under the ASPE future/deferred income taxes method.

Prepare the journal entries for each of the years 2018 to 2021 to record income tax. Assume the tax loss is first carried back, and that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future. (Credit account titles are automatically indented when the 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	Credit
2018	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2019	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2020	enter an account title to record benefit from loss carryback	enter a debit amount	enter a credit amount
	enter an account title to record benefit from loss carryback	enter a debit amount	enter a credit amount
	(To record benefit from loss carryback)
	enter an account title to record deferred benefit from loss carryforward	enter a debit amount	enter a credit amount
	enter an account title to record deferred benefit from loss carryforward	enter a debit amount	enter a credit amount
	(To record deferred benefit from loss carryforward)
2021	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	(To record current tax expense)
	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	(To record deferred tax expense)

eTextbook and Media

List of Accounts

Assuming the tax loss is first carried back and that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future, prepare the income tax section of the 2020 and 2021 income statements, beginning with the line Income (loss) before income tax. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Flounder Inc. (Partial) Income Statement choose the accounting period For the Year Ended December 31, 2020For the Month Ended December 31, 2020December 31, 2020
select an income statement item Income / (Loss) Before Income TaxNet Income / (Loss)Future Benefit due to Loss CarryforwardCurrent Benefit due to Loss CarrybackDeferred Tax LiabilityDeferred Tax Asset				$enter a dollar amount
select an income statement item Deferred Tax LiabilityIncome / (Loss) Before Income TaxNet Income / (Loss)Future Benefit due to Loss CarryforwardDeferred Tax AssetCurrent Benefit due to Loss Carryback		$enter a dollar amount
select an income statement item Deferred Tax AssetCurrent Benefit due to Loss CarrybackFuture Benefit due to Loss CarryforwardDeferred Tax LiabilityIncome / (Loss) Before Income TaxNet Income / (Loss)		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement Deferred Tax AssetNet Income / (Loss)Future Benefit due to Loss CarryforwardIncome / (Loss) Before Income TaxDeferred Tax LiabilityCurrent Benefit due to Loss Carryback				$enter a total net income or loss amount

Flounder Inc. (Partial) Income Statement choose the accounting period For the Month Ended December 31, 2021December 31, 2021For the Year Ended December 31, 2021
select an income statement item Deferred Tax AssetDeferred Tax LiabilityCurrent Benefit due to Loss CarrybackFuture Benefit due to Loss CarryforwardIncome / (Loss) Before Income TaxNet Income / (Loss)				$enter a dollar amount
enter an income statement item		$enter a dollar amount
enter an income statement item		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement Future Benefit due to Loss CarryforwardCurrent Benefit due to Loss CarrybackIncome / (Loss) Before Income TaxDeferred Tax AssetDeferred Tax LiabilityNet Income / (Loss)				$enter a total net income or loss amount