Lanier Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2005 through
Question:
Lanier Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2005 through 2013 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 more likely than not that the related benefits will be realized.
Instructions
(a) What entry(ies) for income taxes should be recorded for 2009?
(b) Indicate what the income tax expense portion of the income statement for 2009 should look like. Assume all income (loss) relates to continuing operations.
(c) What entry for income taxes should be recorded in 2010?
(d) How should the income tax expense section of the income statement for 2010 appear?
(e) What entry for income taxes should be recorded in 2013?
(f) How should the income tax expense section of the income statement for 2013 appear?
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