Shamrock Co. reported the following pretax financialincome (loss) for the years 20152019.

2015		$344,000
2016		478,000
2017		200,000
2018		(727,000	)
2019		252,000

Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2015 and 2016, and 40% for 20172019. Assume the carryback provision is used first for net operating losses.

Prepare the journal entries for the years 20172019 to record income tax expense, income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized. (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.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date 201720182019	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2018	enter an account title to record deferred tax asset or liability during 2018	enter a debit amount	enter a credit amount
	enter an account title to record deferred tax asset or liability during 2018	enter a debit amount	enter a credit amount
	enter an account title to record deferred tax asset or liability during 2018	enter a debit amount	enter a credit amount
	enter an account title to record deferred tax asset or liability during 2018	enter a debit amount	enter a credit amount
	(To record deferred tax asset/liability)
	enter an account title to record the reduction in asset value during 2018	enter a debit amount	enter a credit amount
	enter an account title to record the reduction in asset value during 2018	enter a debit amount	enter a credit amount
	(To record reduction in asset value)
choose a transaction date 201820172019	enter an account title to record the income tax expense	enter a debit amount	enter a credit amount
	enter an account title to record the income tax expense	enter a debit amount	enter a credit amount
	enter an account title to record the income tax expense	enter a debit amount	enter a credit amount
	(To record income tax expense)
	enter an account title to eliminate allowance and recognize loss carryforward	enter a debit amount	enter a credit amount
	enter an account title to eliminate allowance and recognize loss carryforward	enter a debit amount	enter a credit amount
	(To eliminate allowance and recognize loss carryforward)

eTextbook and Media

List of Accounts

Prepare the income tax section of the 2018 income statement beginning with the line Income (loss) before income taxes. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

select an income statement item Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues				$enter a dollar amount
select an opening section name Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues
select an income statement item Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues		$enter a dollar amount
select an income statement item Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues				$enter a total net income or loss amount