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The pretax financial income for loss figures for Splish Brothers Company are as follows. 2017 86,000 2018 (42.000 2019 137.000 2020 129.000 2021 99,000 Pretax
The pretax financial income for loss figures for Splish Brothers Company are as follows. 2017 86,000 2018 (42.000 2019 137.000 2020 129.000 2021 99,000 Pretax Financial income for loss) and taxable income foss) were the same for all years involved. Assume a 25% tax rate for 2017 anda 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward assume that no valuation account is deemed necessary) (Credit account titles are automatically indented when amount is entered. Do not indent manually. AY no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit 2017 Income Tax Expense 17200 Income Tax Payable 17200 2018 Income Tax Refund Receivable 10500 Benefit. Due to Loss Carryback 10500 2019 Deferred Tax Asset 7000 Benefit Due to Lo Carryforward 7400 2020 Income Tax Expen Income Tax Payable Deferred Tax Asset 2021 Income Tax Expense 19000 Deferred Tax Asset 19800
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