5. (15 pts) Below are the reported profits and losses of Amherst Company for the...
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Accounting
5. (15 pts) Below are the reported profits and losses of Amherst Company for the past several years along with their tax rates on income reported. 2014 2015 2016 Income $100,000 $ 20,000 $100,000 $(250,000) $85,000 unknown Tax rate 35% 40% 35% 35% 21% 21% 2017 2018 2019 Amherst elects to use both carry back and carry forward procedures with no valuation allowance and strongly anticipates future profits to recover losses. a. Record the tax effect of the above in 2017. Dr. Cr. | b. Show the income tax section and loss section of the income statement for 2017. C. Record the tax effect of the above in 2018. Dr. Cr
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