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The pretax accounting income ( loss ) for the Katlyn Cascayan Company is as follows for the years indicated: Fiscal Year Pretax Accounting Income Tax

The pretax accounting income (loss) for the Katlyn Cascayan Company is as follows for the years indicated:
Fiscal
Year
Pretax
Accounting Income
Tax Rate
20X2
$ 275,000
30.0%
20X3
225,000
30.0%
20X4
100,000
35.0%
20X5
150,000
35.0%
20X6
200,000
40.0%
20X7
(150,000)
40.0%
20X8
(600,000)
45.0%
20X9
750,000
50.0%
20X2 was Katlyn Cascayans first year of operations. There are no other differences between pretax accounting income and taxable income for the years indicated. Katlyn Cascayan elects the loss carryback option.
Required:
Prepare the journal entries for the years 20X8 and 20X9 to record income tax expense (benefit) and income tax payable (refundable) and the tax effect of the loss carryback and carryforward assuming that at the end of 20X8 the benefits of the loss carryforwards are judged more likely than not to be realized in the future.
Using the assumption in requirement #1 above prepare the Income Tax section of the 20X8 and 20X9 income statement beginning with the line Income/Loss before Income Tax Expense.
Using the assumption in requirement #3 above prepare the Income tax section of the 20X8 and 20X9 income statement beginning with the line Income/Loss before Income Tax Expense.
Please Use Format Below to Answer the Required Entries:
Description/Account
Debit
Credit

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