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the red indicates incorrect - please assist The pretax financial income (or loss) figures for Indigo Company are as follows. 2015 2016 2017 $166,000 258,000
the red indicates incorrect - please assist
The pretax financial income (or loss) figures for Indigo Company are as follows. 2015 2016 2017 $166,000 258,000 77,000 2018 (166,000) 2019 2020 (384,000) 131,000 2021 105,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 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. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) 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. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit 2017 Income Tax Expense 15400 Income Tax Payable 15400 2018 Income Tax Refund Receivable 41500 Benefit Due to Loss Carryforward 41500 2019 Deferred Tax Asset JL 76800 Benefit Due to Loss Carryforward 76800 2020 Income Tax Expense 26200 Deferred Tax Asset 26200 2021 Income Tax Expense 21000 Deferred Tax Asset 21000Step by Step Solution
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