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P19-5 (LO3) EXCEL GROUPWORK (NOL without Valuation Account) Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 2013-2019. 2013
P19-5 (LO3) EXCEL GROUPWORK (NOL without Valuation Account) Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 2013-2019. 2013 2014 2015 2016 2017 2018 2019 Pretax Income (loss) $ 40,000 25,000 50,000 80,000 (180,000) 70,000 100,000 Tax Rate 30% 30% 3000 40% 45% 40% 35% Pretax financial income (loss) and taxable income (loss) were the same for all years since Jennings began business. The tax rates from 2016-2019 were enacted in 2016. Instructions (a) Prepare the journal entries for the years 2017-2019 to record income taxes payable (refundable), income tax expense (benefit), and the where possible and year tax effects of the loss carryback and carryforward. Assume that Jennings elects the carryback provision expects to realize the benefits of any loss carryforward in the year that immediately follows the loss (b) Indicate the effect the 2017 entryf(ies) has on the December 31, 2017, balance sheet. o Prepare the portion of the income statement, starting with "Operating loss before income taxes," for 2017. (d) Prepare the portion of the income statement, starting with "Income before income taxes," for 2018
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