Sheffield Inc reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pretax Income (Loss) Year Tax Rate 2018 $116,000 17 % 2019 110,000 17 % 2020 (234,000) 19 % 2021 317,000 19 % The tax rates listed were all enacted by the beginning of 2018. (a) Your answer is correct. Prepare the journal entries for the years 2018-2021 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2020 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (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.) Date Account Titles and Explanation Debit Credit 2018 Income Tax Expense 19720 Income Tax Payable 19720 2019 Income Tax Expense 18700 ISCOSA TaDa bla 107 2019 Income Tax Expense 18700 Income Tax Payable 18700 2020 Deferred Tax Asset 44460 Income Tax Expense 44460 2021 Income Tax Expense 60230 LIN Income Tax Payable 15770 Deferred Tax Asset 44460 e Textbook and Media List of Accounts Attempts: 2 of 2 used Using multiple attempts has impacted your score. 5% score reduction after attempt 1 (b) Assuming that at the end of 2020 the benefits of the loss carryforward are judged more likely than not to be realized in the future, 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 eg. -45 or parentheses e.g. (45).) Sheffield Inc. Income Statement (Partial) For the Year Ended December 31, 2020 Assuming that at the end of 2020 the benefits of the loss carryforward are judged more likely than not to be realized in the future, 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 e.g. -45 or parentheses e.g. (45).) Sheffield Inc. Income Statement (Partial) For the Year Ended December 31, 2020 Operating Loss before Income Taxes Income Tax Benefit > Net Income/ (Loss) $ $