Lanier SA has pretax financial income (or loss) equal to taxable income (or loss) from 2017–2023 as follows.

Pretax financial income (loss) and taxable income (loss) have been the same for all years since Lanier has been in business. In recording the benefits of a loss carryforward, assume that it is probable that the related benefits will be realized.

Instructions

a. What entry or entries for income taxes should be recorded for 2018?

b. Indicate what the income tax expense portion of the income statement for 2018 should look like. Assume all income (loss) relates to continuing operations.

c. What entry for income taxes should be recorded in 2019? 

d. How should the income tax expense section of the income statement for 2019 appear?

e. What entry for income taxes should be recorded in 2022?

f. How should the income tax expense section of the income statement for 2022 appear?

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Income (Loss) Tax Rate € 48,000 2018 (150,000) 2017 50% 40% 2019 90,000 40% 2020 30,000 40% 2021 105,000 40% 2022 (60,000) 50% 2023 130,000 50%