Solve Question 5

Question 5 Flint Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible): Year 2014 2015 2016 2017 Accounting Income (Loss) $141,000 113,000 (324,000) 49,000 Tax Rate 25% 25% 30% 30% The tax rates listed were all enacted by the beginning of 2014. Prepare the journal entries for each of the years 2014 to 2017 to record income taxes, assuming at December 31, 2016, that it was more likely than not that the company would not be able to benefit from the remaining losses available to carryforward. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation 2014 2015 2016 2017 Prepare the income tax section of the income statements for each of the years 2014 to 2017, beginning with the line "Income (loss) before income tax." (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). Do not leave any answer field blank. Enter o for amounts.) Flint Inc. (Partial) Income Statements 2014 2015 2016 2017