The pretax financial income (or loss) figures for Bonita Company are as follows.
2015 $1...
Business, 20.04.2020 16:52 ayoismeisjjjjuan
The pretax financial income (or loss) figures for Bonita Company are as follows.
2015 $173,000
2016 246,000
2017 82,000
2018 (173,000)
2019 (376,000)
2020 128,000
2021 105,000
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.)
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