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Pharoah Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $67,200 25 % 2016 (210,000 )
Pharoah Corporation has pretax financial income (or loss) from 2015 through 2021 as follows.
Income (Loss) | Tax Rate | |||||
2015 | $67,200 | 25 | % | |||
2016 | (210,000 | ) | 20 | % | ||
2017 | 126,000 | 20 | % | |||
2018 | 42,000 | 20 | % | |||
2019 | 147,000 | 20 | % | |||
2020 | (84,000 | ) | 25 | % | ||
2021 | 84,000 | 25 | % |
Pretax financial income (loss) and taxable income (loss) were the same for all years since Pharoah 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) What entries for income taxes should be recorded for 2016?
C) What entry for income taxes should be recorded in 2017?
E) What entry for income taxes should be recorded in 2020?
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