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Question - Net Operating Losses - The pretax financial income or loss figures for Wenatchee Inc. are as follows:
Year
Income (loss)
Tax Rate
2019
(200,000)
20
2020
150,000
2021
100,000
Required -
a. Prepare the journal entries for the years 2019-2021 assuming Wenatchee uses the carryforward provision.
b. Prepare the income tax section of the 2020 income statement.
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