Question

6:31 . Current Attempt in Progress The pretax financial income for loss) figures for Kingbird Company are as follows. 200 .000 DESDE Pretax financial income (or loss) and taxable income loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts)

2015		$161,000
2016		248,000
2017		76,000
2018		(161,000	)
2019		(390,000	)
2020		119,000
2021		95,000

Answer 1

Date Answers * Journal Entries particulars LE Debit credit 2017 Income tax expense Alc $15.900 TO Income Tax payable $15,200 [$ 76,000 * 20%] 2018 | Income Tax Refund Receivable Ale or $40250 To Benefit Due to Logs Carrybeck $40250 2015 tax= $161000x 25%.- 40250 2018 LOS3 = $ 161,600 x 20%= 62,200 recovered from 2015 Tak 12019 Income Tax refund receivable ale or $15,200 TO Benefit due to logs Carry back $15,200 (2019 Cous covered by 2017 profil I Deferred Tax assets Alc or $62,800 To Benefit due to.Loss Carry forwook | 1-390,000x20%)- $ 15900 porasul 2020 Income Tax expenses Ale or $23.800 To referred Tax asses $ 119,000x20% 021 Income Tax Expenses Ale or $19.000 To Deferred Tax Asseto I |$19,000 [$95000x20%] $62,800