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Question - The pretax financial income (or loss) figures for Metals, Inc. are as follows:
2020 40,000
2018 (230,000)
2019 70,000
2020 (50,000)
2021 80,000
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 201 and a 20% tax rate for the remaining years.
Prepare the journal entries for the years 2018 to 2021 to record income tax expense and the effects of the net operating loss carryforward assuming Metals, Inc. uses the carryforward provision. All income and losses relate to normal operations.
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