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Vaughn Company reported the following pretax financial income (loss) for the years 2018-2022. Pretax financial income (loss) and taxable income (loss) were the same for
Vaughn Company reported the following pretax financial income (loss) for the years 2018-2022. Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2018 and 2019 , and 20% for 2020-2022. Assume the carryback provision is used first for net operating losses. Prepare the journal entries for the years 2020-2022 to record income tax expense, income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming no valuation allowance is needed. (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.)
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