Question
Part C Needs to be solved Kingbird Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015
Part C Needs to be solved
Kingbird Corporation has pretax financial income (or loss) from 2015 through 2021 as follows.
Income (Loss) | Tax Rate | |||||
2015 | $56,640 | 25 | % | |||
2016 | (82,600 | ) | 20 | % | ||
2017 | 106,200 | 20 | % | |||
2018 | 35,400 | 20 | % | |||
2019 | 123,900 | 20 | % | |||
2020 | (70,800 | ) | 25 | % | ||
2021 | 151,600 | 25 | % |
Pretax financial income (loss) and taxable income (loss) were the same for all years since Kingbird has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
(a)
Correct answer icon
Your answer is correct.
What entries for income taxes should be recorded for 2016? (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.)
Account Titles and Explanation | Debit | Credit |
eTextbook and Media
List of Accounts
Attempts: 2 of 8 used
(b)
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Your answer is correct.
Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Kingbird Corporation Income Statement (Partial) December 31, 2016For the Year Ended December 31, 2016For the Quarter Ended December 31, 2016 | ||
DividendsExpensesBenefit Due to Loss CarrybackBenefit Due to Loss CarryforwardIncome Tax BenefitIncome Tax ExpenseNet Income / (Loss)Operating Loss before Income TaxesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | $ | |
DividendsExpensesIncome Tax BenefitIncome Tax Benefit Due to Loss CarrybackIncome Tax Benefit Due to Loss CarryforwardIncome Tax ExpenseNet Income / (Loss)Operating Loss before Income TaxesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | ||
CurrentDeferredDividendsExpensesIncome Tax Benefit Due to Loss CarrybackIncome Tax Benefit Due to Loss CarryforwardNet Income / (Loss)Income before Income TaxesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | ||
DividendsExpensesBenefit Due to Loss CarrybackBenefit Due to Loss CarryforwardIncome Tax BenefitIncome Tax ExpenseNet Income / (Loss)Operating Loss before Income TaxesRetained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues | $ |
eTextbook and Media
List of Accounts
Attempts: 6 of 8 used
(c)
Partially correct answer icon
Your answer is partially correct.
What entry for income taxes should be recorded in 2017? (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.)
Account Titles and Explanation | Debit | Credit |
Part C Only
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