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E19-9B (Carryback and Carryforward of NOL, No Valuation Account, No Temporary Differences)The pretax financial income (or loss) figures for Metals, Inc. are as follows. 2011 $ 90,000 2012 65,000 2013 40,000 2014 (230,000) 2015 70,000 2016 (50,000) 2017

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E19-9B (Carryback and Carryforward of NOL, No Valuation Account, No Temporary Differences)The pretax financial income (or loss) figures for Metals, Inc. are as follows.;2011 $ 90,000;2012 65,000;2013 40,000;2014 (230,000);2015 70,000;2016 (50,000);2017 80,000;Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 40% tax rate for 2011 and 2012 and a 35% tax rate for the remaining years.;Instructions;Prepare the journal entries for the years 2014 to 2017 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Metals, Inc. 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#75329 | Written in 18-Jul-2015

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