Mark, Inc. provides DJ services for corporate parties. Mark reported a net operating loss of $740,000 on its 2018 tax return. During the 3 preceding years, Mark had taxable income and paid taxes at various tax rates as follows: (Click the icon to view the information.) Although Mark had a net operating loss in 2018, it was becasue of an unusual event. Mark's management has substantial evidence to indicate that the company will be profitable over the foreseeable future and will incur a 31% tax rate for each of those years. In fact, during 2019, Mark reported a profit before tax of $810,000. Mark does not report any book-tax differences. Read the requirements. Year Taxable Income Income Tax Rate (%) 2015 $ 340,000 31 % 2016 140,000 28 2017 60,000 12 a. Prepare the journal entries to account for the NOL carryback and NOL carryforward in 2018. b. Compute reported net income (loss) after tax for 2018. c. Prepare the journal entries to account for income taxes in 2019. d. Compute reported net income after tax for 2019. Requirement a. Prepare the journal entries to account for the NOL carryback and NOL carryforward in 2018. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required, select "No Entry Required" on the first line of the Account column and leave all other cells blank.) Begin by preparing the entry, if needed, to record the portion of the NOL carried back. Account 2018 Income Tax Refund Receivable Deferred Tax Asset Income Tax Benefit Prepare the entry, if needed, to record the portion of the NOL carried forward. Account 2018 Income Tax Refund Receivable Deferred Tax Asset Requirement b. Compute reported net income (loss) after tax for 2018. Select the labels and enter the amounts to compute Mark's reported net income (loss) after tax for 2018. (Use parentheses or a minus sign for a net loss.) 2018 Requirement c. Prepare the journal entries to account for income taxes in 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) Account 2019 Requirement d. Compute reported net income after tax for 2019. Select the labels and enter the amounts to compute Mark's reported net income after tax for 2019. Net income after tax Mark, Inc. provides DJ services for corporate parties. Mark reported a net operating loss of $740,000 on its 2018 tax return. During the 3 preceding years, Mark had taxable income and paid taxes at various tax rates as follows: (Click the icon to view the information.) Although Mark had a net operating loss in 2018, it was becasue of an unusual event. Mark's management has substantial evidence to indicate that the company will be profitable over the foreseeable future and will incur a 31% tax rate for each of those years. In fact, during 2019, Mark reported a profit before tax of $810,000. Mark does not report any book-tax differences. Read the requirements. Year Taxable Income Income Tax Rate (%) 2015 $ 340,000 31 % 2016 140,000 28 2017 60,000 12 a. Prepare the journal entries to account for the NOL carryback and NOL carryforward in 2018. b. Compute reported net income (loss) after tax for 2018. c. Prepare the journal entries to account for income taxes in 2019. d. Compute reported net income after tax for 2019. Requirement a. Prepare the journal entries to account for the NOL carryback and NOL carryforward in 2018. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required, select "No Entry Required" on the first line of the Account column and leave all other cells blank.) Begin by preparing the entry, if needed, to record the portion of the NOL carried back. Account 2018 Income Tax Refund Receivable Deferred Tax Asset Income Tax Benefit Prepare the entry, if needed, to record the portion of the NOL carried forward. Account 2018 Income Tax Refund Receivable Deferred Tax Asset Requirement b. Compute reported net income (loss) after tax for 2018. Select the labels and enter the amounts to compute Mark's reported net income (loss) after tax for 2018. (Use parentheses or a minus sign for a net loss.) 2018 Requirement c. Prepare the journal entries to account for income taxes in 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) Account 2019 Requirement d. Compute reported net income after tax for 2019. Select the labels and enter the amounts to compute Mark's reported net income after tax for 2019. Net income after tax
