Question

Whispering Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022. Pretax Income (loss) Tax Rate 2019 $104,000 40 % 2020 (234,000) 40 % 2021 260,000 20 % 2022 130,000 20 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Whispering began business. The tax rates from 2019–2022 were enacted in 2019. New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Whispering expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020 2021 2022 eTextbook and Media List of Accounts New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect. Prepare the portion of the income statement, starting with “Operating loss before income taxes,” for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Whispering Inc. Income Statement (Partial) $ $

Answer 1