The pretax financial income (or loss) figures for Shamrock Company are as follows.
2022 $81,000
2023 (51,000)
2024 (35,000)
2025 111,000
2026 95,000
Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 20% tax rate for all years.
Prepare the journal entries for the years 2022 to 2026 to record income tax expense and the effects of the net operating loss
carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no
valuation account is deemed necessary.) (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.)
Account Titles and Explanation
Debit
2022
2023
2024
Credit
