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  3. eagle company records the following pretax financi

Eagle Company records the following pretax financial income (loss) for both book and tax purposes....

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Accounting

Eagle Company records the following pretax financial income (loss) for both book and tax purposes.

Year

Pretax financial Income (Loss)

Tax Rate

2013

150,000

15%

2014

220,000

20%

2015

(500,000)

25%

2016

300,000

30%

Required

(b) Utilizing the proposition in (a), construct the income tax section of the 2015 income statement, beginning with the line Operating loss before income taxes.(1 mark)

(c) Prepare the journal entries for 2015 and 2016, considering that based on the weight of available evidence at 12/31/15, it is possible that 25% of the benefits of the loss carryforward will not be realized. (1+1=2 marks)

b)

c)

Date

Account title

Debit

Credit

2015

2016

I NEED b and c ONLY

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