Question

Nash Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2009...

Nash Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2009 through 2017 as follows: Income (Loss) Tax Rate 2009 $41,180 30 % 2010 56,800 30 % 2011 24,140 35 % 2012 68,160 50 % 2013 (213,000 ) 40 % 2014 127,800 40 % 2015 42,600 40 % 2016 149,100 40 % 2017 (85,200 ) 45 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Nash 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. Collapse question part (a)

What entries for income taxes should be recorded for 2013? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation Debit Credit (To record carryback.)

(To record carryforward.)

Homework Answers

Answer #1

Answer:-

Explanation :-

●Income tax refund receivable = [(24140 × 35%) + (68160 × 50%) ] = $42,529

● Benifit due to loss carryforward = [ 213000 - 24140 - 68160 ] × 40% = 120700 × 40% = $48,280

JOURNAL ENTRIES (2013) :-

Account titles and explanation debit credit
Income tax refund receivable $42,529
Benifit due to loss carryback $42,529
(To record carryback)
Deferred tax asset $48,280
Benefit due to loss carry forward $48,280
(To record carry forward)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The pretax financial income (or loss) figures for Marin Company are as follows. 2017 72,000 2018...
The pretax financial income (or loss) figures for Marin Company are as follows. 2017 72,000 2018 (37,000 ) 2019 (32,000 ) 2020 110,000 2021 93,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss...
The pretax financial income (or loss) figures for Larkspur Company are as follows. 2017 76,000 2018...
The pretax financial income (or loss) figures for Larkspur Company are as follows. 2017 76,000 2018 (58,000 ) 2019 (43,000 ) 2020 130,000 2021 105,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss...
The pretax financial income (or loss) figures for Blue Company are as follows. 2015 $161,000 2016...
The pretax financial income (or loss) figures for Blue Company are as follows. 2015 $161,000 2016 248,000 2017 76,000 2018 (161,000 ) 2019 (390,000 ) 2020 119,000 2021 95,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the...
The pretax financial income (or loss) figures for Sheffield Company are as follows. 2015 $155,000 2016...
The pretax financial income (or loss) figures for Sheffield Company are as follows. 2015 $155,000 2016 241,000 2017 86,000 2018 (155,000 ) 2019 (376,000 ) 2020 127,000 2021 100,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the...
The pretax financial income (or loss) figures for Skysong Company are as follows. 2017 86,000 2018...
The pretax financial income (or loss) figures for Skysong Company are as follows. 2017 86,000 2018 (41,000) 2019 (36,000) 2020 113,000 2021 98,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All...
In formation for 37,38 and 39. Vintage Car Corporation has pretax financial income (or loss) equal...
In formation for 37,38 and 39. Vintage Car Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2006 through 2012 as follows. 2006 $ 40,000   40% 2007 63,000 40% 2008 36,000 30% 2009 (179,000) 35% 2010 85,000 40% 2011 59,000 40% 2012 (135,000) 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....
Exercise 19-21 The pretax financial income (or loss) figures for Monty Company are as follows. 2017...
Exercise 19-21 The pretax financial income (or loss) figures for Monty Company are as follows. 2017 86,000 2018 (46,000 ) 2019 (41,000 ) 2020 127,000 2021 100,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net...
The pretax financial income (or loss) figures for Shamrock Company are as follows. 2015 $157,000 2016...
The pretax financial income (or loss) figures for Shamrock Company are as follows. 2015 $157,000 2016 233,000 2017 77,000 2018 (157,000 ) 2019 (404,000 ) 2020 125,000 2021 95,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2015 and 2016 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the...
Pharoah Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss)...
Pharoah Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $67,200 25 % 2016 (210,000 ) 20 % 2017 126,000 20 % 2018 42,000 20 % 2019 147,000 20 % 2020 (84,000 ) 25 % 2021 84,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Pharoah has been in business. In recording the benefits of a loss carryforward, assume that it is...
The pretax financial income (or loss) figures for Skysong Company are as follows. 2015 $144,000 2016...
The pretax financial income (or loss) figures for Skysong Company are as follows. 2015 $144,000 2016 225,000 2017 72,000 2018 (144,000 ) 2019 (342,000 ) 2020 108,000 2021 90,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2015 and 2016, and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • can you answer this essay questions 1. Describe three of the key knowledge areas that define...
    asked 46 seconds ago
  • Compare the American Counselors Association (ACA) code of ethics regarding continuing education to the National Association...
    asked 7 minutes ago
  • Python Jupyter Notebook An acronym is a word formed by taking the first letters of the...
    asked 39 minutes ago
  • Question posed after chapter 4.5 of differential equations class, book by p. blanchard, 4th edition :...
    asked 42 minutes ago
  • Below are some crude cause-specific mortality rates from the two studies. Crude mortality rate per 100,000...
    asked 1 hour ago
  • A computer chess game and a human chess champion are evenly matched. They play twelve games....
    asked 1 hour ago
  • Identify and describe instances of the following: Cognitive Dissonance Denial Overgeneralization Conformity Also, how about the...
    asked 1 hour ago
  • Your task is to identify 2 advertisements. One advertisement encourages a consumer to use a non-compensatory...
    asked 1 hour ago
  • For the following exercises, consider this scenario: For each year t, the population of a forest...
    asked 1 hour ago
  • Question 5 A 15-minute-rainfall of 20-year Average Recurrence Interval (ARI) was fallen over a 5ha catchment...
    asked 1 hour ago
  • Explain what is Band structure and and why energy bands are formed in a solid state?...
    asked 1 hour ago
  • Test the hypothesis using the p-value approach Upper H 0H0​: pequals=0.3 versus Upper H 1H1​: pgreater...
    asked 1 hour ago