Answer | ||||||
Answer 1 | Prior Year | Current | Future Deductible Amount | |||
2016 | 2017 | 2018 | ||||
Loss as per Books | $ -260 | |||||
Permanent Diff-Fine Paid | $ 15 | |||||
Temporary Diff-Contingency Loss | $ 20 | $ -20 | ||||
Taxable | $ -225 | |||||
Loss from prior Years | $ -135 | $ -80 | $ 215 | |||
Loss Carryforward | $ 10 | $ -10 | ||||
$ -135 | $ -80 | $ - | $ -30 | |||
Tax Rate | 40% | 40% | 40% | 40% | ||
Tax Payable/(Refundable) | $ -54 | $ -32 | $ - | |||
Deferred Tax Asset | $ -12 | |||||
Deferred Tax, Ending Balance | $ 12 | |||||
Less: Beginning Balance | $ - | |||||
To be recorded | $ -12 | |||||
Journal Entry for 2018 | ||||||
Income Tax Refund | $ 86 | |||||
Deferred Tax Asset | $ 12 | |||||
Income Tax Benefit | $ 98 |
Answer 2 | Operating Loss before Tax | $ -260 | |
Income Tax benefit: | |||
Tax Refund | $ 86 | ||
Future Tax benefits | $ 12 | $ 98 | |
Net Loss | $ -162 |
Answer 3 | |||
Current Year | |||
2019 | |||
Pretax Accounting Income | $ 120 | ||
Temporary Difference: | |||
Contingency Loss | $ -20 | ||
Loss Carryforward | $ -10 | $ -30 | |
Taxable Income | $ 90 | ||
Enacted Tax Rate | 40% | ||
Tax Payable | $ 36 | ||
Deferred Tax, Ending Balance | $ - | ||
Less: Beginning Balance | $ -10 | ||
To be recorded | $ -10 | ||
Journal Entry for 2019 | |||
Income Tax Expense | $ 46 | ||
Deferred Tax Asset | $ 10 | ||
Income Tax Payable | $ 36 |
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