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E19-10B (Two NOLs, No Temporary Differences, No Valuation Account, Entries and Income Statement)Vintage Car Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2008 through 2017 as follows. Income (Loss) Tax Rate 2008

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E19-10B (Two NOLs, No Temporary Differences, No Valuation Account, Entries and Income Statement)Vintage Car Corporation has pretax financial income (or loss) equal to taxable income (or loss);from 2008 through 2017 as follows.;Income (Loss) Tax Rate;2008 $ 40,000 40%;2009 63,000 40%;2010 36,000 30%;2011 (86,000) 30%;2012 (93,000) 40%;2013 76,000 40%;2014 59,000 50%;2015 (135,000) 50%;2016 96,000 40%;2017 168,000 40%;Pretax financial income (loss) and taxable income (loss) were the same for all years since Vintage Car has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.;Instructions;(a) What entry(ies) for income taxes should be recorded for 2011?;(b) Indicate what the income tax expense portion of the income statement for 2011 should look like. Assume all income (loss) relates to continuing operations.;(c) What entry for income taxes should be recorded in 2012?;(d) How should the income tax expense section of the income statement for 2012 appear?;(e) What entry for income taxes should be recorded in 2015?;(f) How should the income tax expense section of the income statement for 2015 appear?

 

Paper#75324 | Written in 18-Jul-2015

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