The accounting income loss figures for Blue Spruce Corporation are as follows:
Accounting income loss and taxable income loss were the same for all years involved. Assume a tax rate for and
and a tax rate for the remaining years.
Prepare the joumal entries for each of the years to to record income tax expense and the effects of the tax loss carrybacks
and carryforwards, assuming Blue Spruce uses the carryback provision first. All income and losses relate to normal operations and it is
more likely than not that the company will generate substantial taxable income in the future. List all debit entries before credit entries.
Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry"
for the account titles and enter for the amounts.
Year
Account Titles and Explanation
Debit
Credit
To record benefit from loss carryback
To record deferred benefit from loss carryforward
To record current tax expense
To record deferred tax expense
