E19-9 (Carryback and Carryforward of NOL No Temporary Differences) The pretax

E19-9 (Carryback and Carryforward of NOL No Temporary Differences)

The pretax financial income (or loss) figures of Synergetics Company are as follows.

2008

177400

2009

259300

2010

85600

2011

(177400)

2012

(388500)

2013

125000

2014

105800

Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 40% tax rate for 2008 and 2009 and a 35% tax
rate for the remaining years.

Prepare the journal entries for the years 2010 to 2014 to record income tax expense and the effects of the net operating loss carrybacks and carry
forwards assuming Synergetic Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss
carry forward assume that no valuation account is deemed necessary.)