Question: (Two NOLs, No Temporary Differences, No Valuation Account, Entries and Income Statement) Felicia Rashad Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2006 through 2014 as follows.
Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carry forward, assume that it is more likely than not that the related benefits will be realized. Instructions
(a) What entry(ies) for income taxes should be recorded for 2010?
(b) Indicate what the income tax expense portion of the income statement for 2010 should look like. Assume all income (loss) relates to continuing operations.
(c) What entry for income taxes should be recorded in 2011?
(d) How should the income tax expense section of the income statement for 2011 appear?
(e) What entry for income taxes should be recorded in 2014?
(f) How should the income tax expense section of the income statement for 2014 appear?