Problem 19-5

Marin Inc. reported the following pretax income (loss) and related tax rates during the years 20132019.

		Pretax Income (loss)		Tax Rate
2013		$41,500		30	%
2014		27,400		30	%
2015		48,800		30	%
2016		74,200		40	%
2017		(173,600)		45	%
2018		74,800		40	%
2019		104,800		35

Pretax financial income (loss) and taxable income (loss) were the same for all years since Marin began business. The tax rates from 20162019 were enacted in 2016.

Prepare the journal entries for the years 20172019 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryback and carryforward. Assume that Marin elects the carryback provision where possible and expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year.

Prepare the portion of the income statement, starting with Operating loss before income taxes, for 2017.