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Sheffield Inc. reports the following pretax income (loss) for both book and tax purposes Year Pretax Income (Loss) Tax Rate 2018 $113,000 20% 2019 97,000

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Sheffield Inc. reports the following pretax income (loss) for both book and tax purposes Year Pretax Income (Loss) Tax Rate 2018 $113,000 20% 2019 97,000 2096 2020 (86,000) 25 % 2021 117.000 25 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half 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 for the amounts.) Prepare the journal entries for years 2018-2021 to record income tax expense bericht) and income taxes poble, and the tax effects of the low carryforward, assuming that based on the weight of available evidence it is more likely than not that one half of the benefits of the loss carryforward will not be realized edit accountities are automatically indented when amount intered Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit 2018 2019 2020 (To record income taxes.) 2021 (To record income taxes.) (To adjust allowance.) Prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes" (Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses es. (451) Sheffield Inc. Income Statement (Partial) $ Prepare the income tax section of the 2021 income statement beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.3.(451) Sheffield Inc. Income Statement (Partial) $

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