ACC/423 (ACC423) INTERMEDIATE FINANCIAL ACCOUNTING III University of Phoenix (Uo

ACC/423 (ACC423) INTERMEDIATE FINANCIAL ACCOUNTING III University of Phoenix (UoP) Kieso D. E. Weygandt J. J. & Warfield T. D. (2007). Intermediate Accounting (12th ed.) (13th Ed.) Hoboken NJ: John Wiley & Sons. Week Four (Week 4) Chapter 19Exercise 19-9 (E19-9) (Carryback and Carryforward of NOL No Valuation Account No Temporary Differences) The pretax financial income (or loss) figures for Jenny Spangler Company are as follows. 2002 $160000 2003 250000 2004 80000 2005 (160000) 2006 (380000) 2007 120000 2008 100000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2002 and 2003 and a 40% tax rate for the remaining years. Instructions Prepare the journal entries for the years 2004 to 2008 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Jenny Spangler Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward assume that no valuation account is deemed necessary.)