Date | Accounts Title & Explanation | Debit | Credit |
2018 | Income Tax Expense | $22,800 | |
Income tax payable | $22,800 | ||
2019 | Income Tax Expense | $18,200 | |
Income tax payable | $18,200 | ||
2020 | Deferred Tax assets | $37,500 | |
Income Tax Benefit | $37,500 | ||
2021 | Income Tax Expense | $31,125 | |
Deferred Tax assets | $31,125 |
In 2020 Loss is $300,000 but on the basis of available evidence 50% of benefits of loss can be can be taken in future. So DTA will be created @ 25% on $150,000 = $37,500
$37,500 is income tax benefit which can be availed in future.
In 2021 Income tax is not payable as it is adjusted against carry forward loss. But we will book Income tax expense for the amount 25% on Taxable profit $125,000. For the same amount DTA will be reduce.
You are viewing Attempt 1 Bey Accounting ekly Updates Tamarisk Inc. reports the following pretax income...
Exercise 19-23 Pearl Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Assume the carryback provision is used for a net operating loss.) Pretax Income (Loss) Year Tax Rate 2015 2016 2017 2018 $113,000 84,000 (270,000) 231,000 The tax rates listed were all enacted by the beginning of 2015. Prepare the journal entries for the years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the...
Problem 19-5 (Part Level Submission) Blossom Inc. reported the following pretax income (loss) and related tax rates during the years 2013-2019. Pretax Income (loss) 2013 2014 2015 2016 2017 2018 2019 $42,400 26,300 53,600 76,900 (177,700 ) 71,100 93,200 Tax Rate 30 % 30 % 30 % 40 % 45 % 40 % 35 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Blossom began business. The tax rates from 2016-2019 were enacted...
Exercise 19-24 (Part Level Submission) Kingbird Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $113,000 40 % 2016 97,000 40 % 2017 (308,000 ) 45 % 2018 117,000 45 % The tax rates listed were all enacted by the beginning of 2015. (a) Prepare the journal entries for years 2015–2018 to record income tax expense...
Could someone kindly assist me with the section in red? I am calculating something incorrectly. Exercise 19-24 (Part Level Submission) Bonita Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.) Year Tax Rate 2015 2016 2017 2018 Pretax Income (Loss) $127,000 86,000 (281,000 ) 127,000 40 % 40 % 45 % The tax rates listed were all enacted by the beginning of 2015....
Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations: 2017 2018 2019 $ 341,000 (518, 000) 700,000 Puritan's tax rate is 38% for all years. Puritan elected a loss carryback As of December 31, 2018. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What did Puritan report on December 31, 2018, as the deferred tax asset for the...
Question 3 View Policies Current Attempt In Progress Metlock Inc. reports the following pretax income (loss) for both book and tax purposes. 20% Pretax Year Income (Loss Tax Rate 2018 $118,000 2019 98,000 20% 2020 (299,000) 25 % 2021 117,000 25 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryforward,...
Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $118,000 34 % 2016 90,000 34 % 2017 (296,000 ) 38 % 2018 229,000 38 % The tax rates listed were all enacted by the beginning of 2015. Collapse question part (a) Prepare the journal entries for the years 2015–2018 to record income tax expense (benefit)...
Whispering Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.) Year Tax Rate 40 % Pretax Income (Loss) $114,000 91,000 (300,000) 125,000 2015 2016 2017 2018 40% 45 % 45 % The tax rates listed were all enacted by the beginning of 2015. Prepare the journal entries for years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable), and the...
The pretax financial income of Flounder Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2017 $305,000 $173,000 35 % 2018 349,000 216,000 40 % 2019 358,000 277,000 40 % 2020 429,000 615,000 40 % Pretax financial income for each year includes a nondeductible expense of $29,100 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is...
Pina Colada Inc. reported the following accounting income (loss) and related tax rates during the years 2015 to 2021: Accounting TaxYear Income (Loss) Rate2015$70,00025%201625,00025%201764,00025%201876,00030%2019(200,000)35%202073,00030%202195,00025%Accounting income (loss) and taxable income (loss) were the same for all years since Pina Colada began business. The tax rates from 2018 to 2021 were enacted in 2018.Assume Pina Colada Inc. follows ASPE for all parts of this question, except when asked about the effect of reporting under IFRS in part (b).Part 1Prepare the journal entries to record income taxes for the years 2019 to...