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(Carryback and Carryforward of NOL, No Valuation Account, No Temporary Differences)

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(Carryback and Carryforward of NOL, No Valuation Account, No Temporary Differences);The pretax financial income (or loss) figure for Jenny Sprangler Company are as follows;2002 $160,000;2003 250,000;2004 80,000;2005 (160,000);2006 (380,000);2007 120,000;2008 100,000;Pretax financial income (or loss) and taxable income (loss) were the same for all years;involved. Assume a 45% tax rate of 2002 and 2003 and a 40% tax rate for the remaining;years.;Instructions;Prepare the journal entries for the years 2004 to 2008 to record income tax expense and;the effects of the net operating loss carrybacks and carryforwards assuming Jenny;Spangler Company uses the carryback provision. All income and losses relate to normal;operations. (In recording the benefits of a loss carryforward, assume that no valuation;account is deemed necessary.)

 

Paper#25488 | Written in 18-Jul-2015

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