Question
Hello, I need help with this... Carryback and Carryforward The pretax financial income (or loss) figures for Bryan Clark Company are as follows. 2016 -
Hello,
I need help with this...
Carryback and Carryforward
The pretax financial income (or loss) figures for Bryan Clark Company are as follows.
2016 - $ 88,000
2017 -137,500
2018 - 44,000
2019 - (88,000)
2020 - (191,900)
2021 -66,000
2022-55,000
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2016 and 2017 and a 25% tax rate for the remaining years.
Prepare the journal entries for the years 2015-2019 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Bryan Clark Company uses the carryback provision.
- All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
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