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Sunland Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. ...

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Accounting

Sunland Corporation has pretax financial income (or loss) from 2015 through 2021 as follows.

Income (Loss)

Tax Rate
2015 $69,120 25 %
2016 (216,000

)

 20 %
2017 129,600 20 %
2018 43,200 20 %
2019 151,200 20 %
2020 (86,400

)

 25 %
2021 86,400 25 %

Pretax financial income (loss) and taxable income (loss) were the same for all years since Sunland has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.

a. What entry(ies) for income taxes should be recorded for 2016?

b. Indicate what the income tax expense portion of the income statement for 2016 should look like. Assume all income (loss) relates to continuing operations.

c. What entry for income taxes should be recorded in 2017?

d. How should the income tax expense section of the income statement for 2017 appear?

e. What entry for income taxes should be recorded in 2020?

f. How should the income tax expense section of the income statement for 2020 appear?

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