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Business, 19.03.2020 18:39 bugsbunny27

The pretax financial income (or loss) figures for Cheyenne Company are as follows.

2012 $147,000
2013 244,000
2014 72,000
2015 (147,000 )
2016 (370,000 )
2017 110,000
2018 93,000

Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 40% tax rate for 2012 and 2013 and a 35% 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 Cheyenne Company uses the carryback provision. All income and losses relate to normal operations.

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The pretax financial income (or loss) figures for Cheyenne Company are as follows.

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