(NOL Carry back and Carry forward, Valuation Account Needed) Hayes Co. reported the following pretax financial income (loss) for the years 2009–2013.
Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2009 and 2010, and 40% for 2011–2013. Assume the carry back provision is used first for net operating losses.
(a) Prepare the journal entries for the years 2011–2013 to record income tax expense, income tax payable (refundable), and the tax effects of the loss carry back and loss carry forward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carry forward will not be realized.
(b) Prepare the income tax section of the 2012 income statement beginning with the line ?oIncome (loss) before income taxes.??
Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...