Lanier Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2007 through 2015 as follows.

Pretax financial income (loss) and taxable income (loss) were the same for all years since Lanier has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is probable that the related benefits will be realized.
Instructions

(a) What entry(ies) for income taxes should be recorded for 2011?

(b) Indicate what the income tax expense portion of the income statement for 2011 should look like.
Assume all income (loss) relates to continuing operations.

(c) What entry for income taxes should be recorded in 2012?

(d) How should the income tax expense section of the income statement for 2012 appear?

(e) What entry for income taxes should be recorded in 2015?

(f) How should the income tax expense section of the income statement for 2015 appear?

Transcribed Image Text:

Income (Loss) Tax Rate 2007 29,000 30% 2008 40,000 30% 2009 22,000 35% 2010 48,000 50% 2011 (150,000) 40% 2012 90,000 40% 2013 30,000 40% 2014 105,000 40% 2015 (50,000) 45%