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Problem 19-5 Pretax Income (loss) Tax Rate Date Account Titles and Explanation D

ID: 2749059 • Letter: P

Question

Problem 19-5

Pretax Income (loss)

Tax Rate

Date

Account Titles and Explanation

Debit

Credit

2012

(To record carryback.)

(To record carryforward.)

2013

Problem 19-5

Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 2008–2014.

Pretax Income (loss)

Tax Rate

2008 $44,700 30 % 2009 27,700 30 % 2010 56,800 30 % 2011 80,200 40 % 2012 (186,000) ) 45 % 2013 73,200 40 % 2014 105,100 35 %
Pretax financial income (loss) and taxable income (loss) were the same for all years since Jennings began business. The tax rates from 2011–2014 were enacted in 2011.  

Explanation / Answer

Problem 19-5 Pretax Income (loss) Tax Rate Date Account Titles and Explanation D