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Swifty Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Swiftys policy is to carry back any tax losses first before carrying forward any remaining losses to future years.

Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Swifty follows the future income taxes method under ASPE.

LIST OF ACCOUNTS:

• Allowance to Reduce Deferred Tax Asset to Expected Realizable Value
• Current Tax Benefit
• Current Tax Benefit-Discontinued Operations
• Current Tax Benefit-Discontinued Operations
• Current Tax Expense
• Current Tax Expense-Discontinued Operations
• Current Tax Expense-Discontinued Operations
• Current Tax Payable
• Deferred Tax Asset
• Deferred Tax Expense
• Deferred Tax Expense-Discontinued Operations
• Deferred Tax Benefit-Discontinued Operations
• Deferred Tax Benefit-Discontinued Operations
• Deferred Tax Benefit-OCI
• Deferred Tax Expense
• Deferred Tax Expense-Discontinued Operations
• Deferred Tax Expense-OCI
• Deferred Tax Liability
• Future Tax Asset
• Future Tax Benefit
• Future Tax Expense
• Future Tax Liability
• FV-NI Investments
• FV-OCI Investments
• Income Tax Payable
• Income Tax Receivable
• Investment Income or Loss
• Land
• No Entry
• Retained Earnings
• Unrealized Gain or Loss
• Unrealized Gain or Loss-OCI

Tax Rate Year 2020 30% 2021 33% Income/ (Loss) 26,000 53,000 20,000 (110,000) (51,000) 78,000 2022 35% 2023 38% 2024 32% 2025 32% Date Account Titles and Explanation Debit Credit (To record benefit from loss carryback.) (To recognize benefit of loss carryforward.) (To record future tax expense.) (To record current tax expense.) Tax Rate Year 2020 30% 2021 33% Income/ (Loss) 26,000 53,000 20,000 (110,000) (51,000) 78,000 2022 35% 2023 38% 2024 32% 2025 32% Date Account Titles and Explanation Debit Credit (To record benefit from loss carryback.) (To recognize benefit of loss carryforward.) (To record future tax expense.) (To record current tax expense.)

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