Question 3 Starlight reported the following pretax financial income (loss) for the years 2019-2022. 2019...
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Accounting
Question 3 Starlight reported the following pretax financial income (loss) for the years 2019-2022. 2019 2020 2021 2022 Pretax Income (Loss) 330,000 (60,000) (800,000) 30,000 Tax Rate 35% 35% 21% 21% Pretax financial income (loss) and taxable income (loss) were the same for all years involved. Instruction Prepare the journal entries for the years 2020 to 2022 to record income tax expense and the effects of the net operating loss carryforwards. Additionally, assume that based on the weight of available evidence, the company judged that more likely than not that one-fourth of the benefits of the loss carryforward will not be realized. (7 points)
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