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Hi please help!!! Exercise 19-25 Cullumber reported the following pretax financial income (loss) for the years 2015-2019. $227,000 2015 327,000 2016 2017 92,000 2018 505,000
Hi please help!!!
Exercise 19-25 Cullumber reported the following pretax financial income (loss) for the years 2015-2019. $227,000 2015 327,000 2016 2017 92,000 2018 505,000 2019 183,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2015 and 2016, and 40% for 2017-2019. Assume the carryback provision is used first for net operating losses. Prepare the journal entries for the years 2017-2019 to record income tax expense, 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-fifth 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 Debit Credit 2017 Income Tax Expense Income 2018 ncome Tax Refund Receiv Deferred Tax Asset Benefit Due to Loss Carryb Benefit Due to Loss Carry fi (To record refund. Benefit Due to Loss Carryfi Allowance to Reduce Defer (To record allowance.)Step by Step Solution
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