Pronghorn Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) $52,800 (77,000) 99,000 33,000 115,500 (66,000) 142,000 Tax Rate 2015 25% 2016 20% 20% 20% 20% 25% 25% 2017 2018 2019 2020 2021 Pretax financial income (loss) and taxable income (loss) were the same for all years since Pronghorn has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. What entries for income taxes should be recorded for 2016? (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 0 for the amounts.) Account Titles and Explanation Debit Credit Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Pronghorn Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) $52,800 (77,000) 99,000 33,000 115,500 (66,000) 142,000 Tax Rate 2015 25% 2016 20% 20% 20% 20% 25% 25% 2017 2018 2019 2020 2021 Pretax financial income (loss) and taxable income (loss) were the same for all years since Pronghorn has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. What entries for income taxes should be recorded for 2016? (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 0 for the amounts.) Account Titles and Explanation Debit Credit Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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