Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 17, Problem 17.6P
a.
To determine
To prepare: Journal entries to record the NOL carry back and NOL carry forward.
Given Information:
Taxable income for year 2015 is $300,000 and tax rate is 34%.
Taxable income for year 2016 is $100,000 and tax rate is 25%.
Taxable income for year 2017 is $50,000 and tax rate is 15%.
b.
To determine
The net income or loss for the year 2018.
c.
To determine
To prepare: Journal entry to record income tax benefit in year 2019.
d.
To determine
The net income of the year 2019.
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XYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021.
Year
Pretax Income (loss)
Tax rate
2016
$75,000
30%
2017
150,000
30%
2018
240,000
40%
2019
(540,000)
48%
2020
210,000
40%
2021
300,000
42%
Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax effects of the loss. Assume that XYZ elects the carryback provision where possible and it is probable that it will realize benefits of any loss carryforward.
Prepare the portion of the income statement that presents your answer in part (a) for the year ended 2019.
Conlin Corporation had the following tax information.
Year
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2015
$300,000
35%
$105,000
2016
325,000
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2017
400,000
30
120,000
In 2018, Conlin suffered a net operating loss of $480,000, which it elected to carry back. The 2018 enacted tax rate is 29%. Prepare Conlin’s entry to record the effect of the loss carryback.
Kingbird Corporation had the following tax information.
Year
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In 2021, Kingbird suffered a net operating loss of $489,600, which it elected to carryback. The 2021 enacted tax rate is 29%.Prepare Kingbird’s entry to record the effect of the loss carryback. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
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enter a debit amount
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Chapter 17 Solutions
Intermediate Accounting (2nd Edition)
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