Question

Shamrock Co. reported the following pretax financialincome (loss) for the years 2015–2019.

2015		$344,000
2016		478,000
2017		200,000
2018		(727,000	)
2019		252,000

Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2015 and 2016, and 40% for 2017–2019. Assume the carryback provision is used first for net operating losses.

Prepare the income tax section of the 2018 income statement beginning with the line “Income (loss) before income taxes.” (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

select an income statement item                                                                      Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues				$enter a dollar amount
select an opening section name                                                                      Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues
select an income statement item                                                                      Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues		$enter a dollar amount
select an income statement item                                                                      Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement                                                                      Benefit Due to Loss CarrybackBenefit Due to Loss CarryforwardDividends DeclaredExpensesIncome Tax BenefitIncome (Loss) Before Income TaxesNet Income / (Loss)RevenuesTotal Cost & ExpensesTotal Revenues				$enter a total net income or loss amount

Answer 1