Pharoah raported the following pratax financial incoma $($loss$)$ for the years $2025-2027.$

Pretax financial income $($loss$)$ and taxable income $($loss$)$ wers the same for all yaars involvad. The enacted tax rate was $20\%$ for $2025-$

$($a$)$

Your anawer is partially correct.

Prepare the journal entries for the years $2025-2027$ to record income tax expense, income taxes payable, and the tax effects of

the loss carryforward, assuming that based on the waight of available avidence, it is mora likely than not that ona$-$ffth of the

banafits of the loss carryforward will not be raalizad. $($List all debit entries before credit entries. Credit account titles are dutomatically

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. Record journal entries in the order presented in the problem.$)$

Debit

Credit

$($To record income taxes$)$

Income Tax Exgenas

$($To record allowance$)$

$2027$

$$21,600$

Daficred Tax. Asant

$($To record income taxes$)$

$($To adjust allowance$)$