Solution-Prepare the journal entries for years to record

Prepare the journal entries for years to record tax effects

Reference no: EM132450141

Problem - Pina Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.)

Year	Pretax Income (Loss)	Tax Rate
2015	$123,000	40%
2016	98,000	40%
2017	(270,000)	45%
2018	110,000	45%

The tax rates listed were all enacted by the beginning of 2015.

Required - Prepare the journal entries for years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized.

Reference no: EM132450141

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Prepare the journal entries for years to record tax effects

Reference no: EM132450141

Reference no: EM132450141

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