Sheridan Inc. reported the following pretax income (loss) and related tax rates during the years 2024-2027....
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Sheridan Inc. reported the following pretax income (loss) and related tax rates during the years 2024-2027. Pretax Income (loss) Tax Rate 2024 $98,000 40% 2025 (198,000) 40% 2026 248,000 20% 2027 80,900 20% Pretax financial income (loss) and taxable income (loss) were the same for all years since Sheridan began business. The tax rates from 2024-2027 were enacted in 2024. (a) Prepare the journal entries for the years 2025-2027 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Sheridan expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation 2025 Debit Credit 2026 2027 Sheridan Inc. reported the following pretax income (loss) and related tax rates during the years 2024-2027. Pretax Income (loss) Tax Rate 2024 $98,000 40% 2025 (198,000) 40% 2026 248,000 20% 2027 80,900 20% Pretax financial income (loss) and taxable income (loss) were the same for all years since Sheridan began business. The tax rates from 2024-2027 were enacted in 2024. (a) Prepare the journal entries for the years 2025-2027 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Sheridan expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation 2025 Debit Credit 2026 2027
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