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Bridgeport reported the following pretax financial income (loss) for the years 20152019. 2015 $253,000 2016 338,000 2017 87,000 2018 (604,000 ) 2019 195,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2015 and 2016, and 40% for 20172019. Assume the carryback provision is used first for net operating losses.

Prepare the journal entries for the years 20172019 to record income tax expense, income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized. (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.) Date Account Titles and Explanation Debit Credit 2017 2018 (To record refund.) (To record allowance.) 2019 (To record income taxes.) (To adjust allowance.) SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT

Prepare the income tax section of the 2018 income statement beginning with the line Income (loss) before income taxes.. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Income Statement (Partial) $ $ $

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