Part 1a |
||
Income Tax Refund Receivable |
144000 |
|
Income Tax benefits from NOL carryback |
144000 |
|
Part 1b |
||
Income Tax Refund Receivable |
140000 |
|
Deferred tax asset |
60000 |
|
Income Tax benefits from NOL carryback |
140000 |
|
Income Tax benefits from NOL carry forward |
60000 |
Suppose A company had the following taxable income and tax rates: 2015 20162017 2018 Taxable income...
Conlin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015 $300,000 35% $105,000 2016 325,000 30 97,500 2017 400,000 30 120,000 In 2018, Conlin suffered a net operating loss of $480,000, which it elected to carry back. The 2018 enacted tax rate is 29%. Prepare Conlin’s entry to record the effect of the loss carryback.
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...
In 2015, Anna Kate, Inc. reported taxable income of 235,000. In 2016, it reported taxable income of 25,000. In 2017, it reported taxable income of 105,000. In 2018, Anna Kate experienced a net operating loss of 90,000. Assuming that Anna Kate chooses to forgo the carryback, how would Anna Kate apply this net operating loss? Please illustrate your answer for each year that is applicable. If there is a carryforward, the corporation will apply the carryforward in calculating taxable income...
Cheyenne Corporation had the following tax
information.
Year
Taxable Income
Tax Rate
Taxes Paid
2015
$306,000
34%
$104,040
2016
324,000
29%
93,960
2017
393,000
29%
113,970
In 2018, Cheyenne suffered a net operating loss of $488,000, which
it elected to carry back. The 2018 enacted tax rate is 28%.
Prepare Cheyenne’s entry to record the effect of the loss
carryback. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no
entry is required, select...
Larkspur Corporation had the following tax
information.
Year
Taxable Income
Tax Rate
Taxes Paid
2015
$294,000
35%
$102,900
2016
332,000
30%
99,600
2017
399,000
30%
119,700
In 2018, Larkspur suffered a net operating loss of $476,000, which
it elected to carry back. The 2018 enacted tax rate is 29%.
Prepare Larkspur’s entry to record the effect of the loss
carryback. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no
entry is required, select...
Bonita Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015 $304,000 38% $115,520 2016 322,000 33% 106,260 2017 404,000 33% 133,320 In 2018, Bonita suffered a net operating loss of $481,000, which it elected to carry back. The 2018 enacted tax rate is 32%. Prepare Bonita’s entry to record the effect of the loss carryback. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select...
Teal Inc. reported the following pretax income (loss) and related tax rates during the years 2013–2019. Pretax Income (loss) Tax Rate 2013 $38,600 30 % 2014 23,900 30 % 2015 48,900 30 % 2016 73,600 40 % 2017 (196,900 ) 45 % 2018 74,800 40 % 2019 98,500 35 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Teal began business. The tax rates from 2016–2019 were enacted in 2016. Prepare the journal...
Buffalo reported the following pretax financial income (loss) for the years 2015-2019. 2015 2016 2017 2018 2019 $248,000 379,000 96,000 (535,000) 186,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2015 and 2016, and 40% for 2017-2019. Assume the carryback provision is used first for net operating losses. Your answer is partially correct. Try again. Prepare the journal entries for the years 2017-2019 to record income...
Shamrock Inc. reported the following pretax income (loss) and related tax rates during the years 2013-2019. Pretax Income (loss) Tax Rate 2013 $41,000 30 % 24,200 2014 30 % 2015 48,800 30 % 2016 84,400 40 % (173,700) 2017 45 % 2018 68,800 40 % 35 % 2019 99,900 Pretax financial income (loss) and taxable income (loss) were the same for all years since Shamrock began business. The tax ratess from 2016-2019 were enacted in 2016 Prepare the journal entries...
Indigo Inc. reported the following pretax income (loss) and
related tax rates during the years 2013–2019.
Pretax Income (loss)
Tax Rate
2013
$38,500
30
%
2014
27,400
30
%
2015
45,100
30
%
2016
78,500
40
%
2017
(196,400
)
45
%
2018
79,600
40
%
2019
96,200
35
%
Pretax financial income (loss) and taxable income (loss) were the
same for all years since Indigo began business. The tax rates from
2016–2019 were enacted in 2016.
(a)
Prepare the...