The accounting income (loss) figures for Swifty Corporation are as follows:

2015                    $165,000
2016                      241,000
2017                       85,000
2018                    (165,000)
2019                    (381,000)
2020                    136,000
2021                    152,000

Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a 30% tax rate for 2015 and 2016, and a 25% tax rate for the remaining years.

Prepare the journal entries for each of the years 2017 to 2021 to record income tax expense and the effects of the tax loss carrybacks and carryforwards, assuming Swifty Corporation uses the carryback provision first. All income and losses relate to normal operations and it is more likely than not that the company will generate substantial taxable income in the future.

Answer rating: 100% (QA)

Date General Journal Debit Credit 2017 Income Tax Expenses 85... View the full answer