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

profilemujionostevo
 (Not rated)
 (Not rated)
Chat

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?

    • 9 years ago
    correct answer
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      e19_10_ll.docx