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XYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021. Year 2016 2017 2018 Pretax Income (loss) $75,000 150.000
XYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021. Year 2016 2017 2018 Pretax Income (loss) $75,000 150.000 240.000 (540,000 210,000 300.000 Tax rate 30% 30% 40% 48% 40% 42% 2019 2020 2021 a. Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax effects of the loss. Assume that XYZ elects the canyback provision where possible and it is probable that it will realize benefits of any loss canyforward b. Prepare the portion of the income statement that presents your answer in part (a) for the year ended 2019
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