The pretax financial income (or loss) figures for Monty Company are as follows...
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The pretax financial income (or loss) figures for Monty Company are as follows 2012 2013 2014 2015 2016 2017 2018 $147,000 237,000 76,000 (147,000) (377,000) 130,000 105,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2012 and 2013 and a 40% tax rate for the remaining years Prepare the journal entries for the years 2014 to 2018 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Monty Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (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.)
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