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

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

	Income (Loss)		Tax Rate
2015	$56,640		25	%
2016	(177,000	)	20	%
2017	106,200		20	%
2018	35,400		20	%
2019	123,900		20	%
2020	(70,800	)	25	%
2021	70,800		25	%

Pretax financial income (loss) and taxable income (loss) were the same for all years since Sage 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.

What entries for income taxes should be recorded for 2016?

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

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

What entry for income taxes should be recorded in 2020

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

Expert Solution

ekkarill92 answered 1 year ago

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