Swifty Inc. reported the following accounting income (loss) and related tax rates during the years 2015 to 2021:

		Accounting				Tax
Year		Income (Loss)				Rate
2015		$70,000				25%
2016		22,000				25%
2017		60,000				25%
2018		80,000				30%
2019		(203,000	)			35%
2020		71,000				30%
2021		91,000				25%

Accounting income (loss) and taxable income (loss) were the same for all years since Swifty began business. The tax rates from 2018 to 2021 were enacted in 2018. Assume Swifty Inc. follows ASPE for all parts of this question, except when asked about the effect of reporting under IFRS in part (b).

Prepare the journal entries to record income taxes for the years 2019 to 2021. Assume that Swifty uses the carryback provision where possible and expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (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 0 for the amounts.)

Show how the bottom portion of the income statement would be reported in 2019, beginning with Loss before income tax. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Show how the bottom portion of the income statement would be reported in 2020, starting with Income before income tax. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Prepare the journal entries for the years 2019 to 2021 to record income taxes, assuming that Swifty uses the carryback provision where possible but is uncertain if it will realize the benefits of any loss carryforward in the future. Swifty does not use a valuation allowance. (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 0 for the amounts.)

Assume now that Swifty uses a valuation allowance account along with its Future Tax Asset account. Identify which entries in the previous part of the question would differ and prepare them. (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 0 for the amounts.)

Indicate how the bottom portion of the income statements for 2019 and 2020 would be reported. Assume that Swifty uses the carryback provision where possible but is uncertain if it will realize the benefits of any loss carryforward in the future. Swifty does not use a valuation allowance. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)