Sunland Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. ...
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Accounting
Sunland Corporation has pretax financial income (or loss) from 2015 through 2021 as follows.
Income (Loss)
Tax Rate
2015
$69,120
25
%
2016
(216,000
)
20
%
2017
129,600
20
%
2018
43,200
20
%
2019
151,200
20
%
2020
(86,400
)
25
%
2021
86,400
25
%
Pretax financial income (loss) and taxable income (loss) were the same for all years since Sunland has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
a. What entry(ies) for income taxes should be recorded for 2016?
b. Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations.
c. What entry for income taxes should be recorded in 2017?
d. How should the income tax expense section of the income statement for 2017 appear?
e. What entry for income taxes should be recorded in 2020?
f. How should the income tax expense section of the income statement for 2020 appear?
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