The pretax financial income (or loss) figures for Marin Company are as follows.2017 76,000 2018 (48,000)2019 (43,000)2020 116,000 2021 104,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years.Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.Account Titles and ExplanationDebitCredit2017enter an account title to record carrybackenter a debit amountenter a credit amountenter an account title to record carrybackenter a debit amountenter a credit amount2018enter an account title to record carryforwardenter a debit amountenter a credit amountenter an account title to record carryforwardenter a debit amountenter a credit amount2019enter an account titleenter a debit amountenter a credit amountenter an account titleenter a debit amountenter a credit amount2020enter an account titleenter a debit amountenter a credit amountenter an account titleenter a debit amountenter a credit amountenter an account titleenter a debit amountenter a debit amount2021enter an account titleenter a debit amountenter a credit amountenter an account titleenter a credit amountenter a debit amount

Working Notes: 1. ($76,000 x 25%) = $19,000 2. ($48,000 x 20%) = $9,600 3. ($43,000 x 20%) = $8,600…

Answered: The pretax financial income (or loss)…

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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The pretax financial income (or loss) figures for Marin Company are as follows.

2017	76,000
2018	(48,000	)
2019	(43,000	)
2020	116,000
2021	104,000

Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years.

Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.

Account Titles and Explanation	Debit	Credit
2017
enter an account title to record carryback	enter a debit amount	enter a credit amount
enter an account title to record carryback	enter a debit amount	enter a credit amount
2018
enter an account title to record carryforward	enter a debit amount	enter a credit amount
enter an account title to record carryforward	enter a debit amount	enter a credit amount
2019
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
2020
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a debit amount
2021
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a credit amount	enter a debit amount

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