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  3. exercise 19-24 swifty inc. reports the following p

Exercise 19-24 Swifty Inc. reports the following pretax income (loss) for both book and tax...

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Accounting

Exercise 19-24

Swifty Inc. reports the following pretax income (loss) for both book and tax purposes.

Year

Pretax Income (Loss)

Tax Rate
2018 $128,000 20 %
2019 96,000 20 %
2020 (285,000 ) 25 %
2021 116,000 25 %
The tax rates listed were all enacted by the beginning of 2018.
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Prepare the journal entries for years 20182021 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half 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.)

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