E19-25B (NOL Carryback and Carryforward, Valuation Account Needed)Topper Company reported the following pretax financial income (loss) for the years 2013 through 2017. 2013 $ 70,000 2014 45,000 2015 (260,000) 2016 90,000 2017 215,000 Pretax financial inc
E19-25B (NOL Carryback and Carryforward, Valuation Account Needed)Topper Company reported the following pretax financial income (loss) for the years 2013 through 2017.;2013 $ 70,000;2014 45,000;2015 (260,000);2016 90,000;2017 215,000;Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 30% for 2013 through 2015, and 35% for 2016 and thereafter. Assume the carryback provision is used first for net operating losses.;Instructions;(a) Prepare the journal entries for the years 2013 through 2017 to record income tax expense, income tax payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that 60 percent of the benefits of the loss carryforward will not be realized.;(b) Prepare the income tax section of the 2015 income statement beginning with the line ?Income (loss) before income taxes.
Paper#75287 | Written in 18-Jul-2015Price : $27