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The pretax financial income(or loss) figures for Synergetics Company are as follows. 2006 $160,000 2007 250,000 2008 90,000 2009 (160,000) 2010 (350,000) 2011 120,000 2012
The pretax financial income(or loss) figures for Synergetics Company are as follows. 2006 $160,000 2007 250,000 2008 90,000 2009 (160,000) 2010 (350,000) 2011 120,000 2012 100,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2006 and 2007 and a 40% tax rate for the remaining years. Prepare the journal entries for the years 2008 to 2012 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Synergetics Company uses the carryback provision. All income and losses relate to normal operations.( In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)
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