The pretax financial income (or loss) figures for Synergetics Company are as follows. 2019 ............... $ 80,000
Question:
The pretax financial income (or loss) figures for Synergetics Company are as follows.
2019 ............... $ 80,000
2020 ............... (160,000)
2021 ............... (380,000)
2022 ............... 120,000
2023 ............... 100,000
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved.
Assume a 45% tax rate for 2019 and 2020, and a 40% tax rate for the remaining years.
Instructions
Prepare the journal entries for the years 2019–2023 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 it is probable the loss carryforward will be realized.
Step by Step Answer:
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield