Solve Question 6

Question 6 The accounting income (loss) figures for Riverbed Corporation are as follows: 2012 $167,000 2013 245,000 2014 84,000 2015 (167,000) 2016 (382,000) 2017 135,000 2018 155,000 Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2012 and 2013, and a 25% tax rate for the remaining years. Prepare the journal entries for each of the years 2014 to 2018 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Riverbed Corporation uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future. (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.) Year Account Titles and Explanation Debit Credit 2014 2015 2016 (To recognize benefit of loss carryback.) (To recognize benefit of loss carryforward.) 2017 (To record current taxes.) (To record deferred tax.) 2018