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In: Accounting
SUPPLEMENTAL PROBLEM 19-2 Meyer reported the following pretax financial income (loss) for the years 2019-2022: 2019...
SUPPLEMENTAL PROBLEM 19-2
Meyer reported the following pretax financial income (loss) for the years 2019-2022:
|
2019 |
$350,000 |
|
2020 |
120,000 |
|
2021 |
(570,000) |
|
2022 |
180,000 |
Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate is 21% for all years.
REQUIRED:
- Prepare journal entries for 2021 and 2022 to record the current portion and the deferred portion of income taxes, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized.
- Prepare the income tax section of the 2021 income statement beginning with the line “Income (loss before income taxes.”
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Meyer reported the following pretax financial income (loss) for the years 2020–2022. 2020 $120,000 2021 (150,000)...
Meyer reported the following pretax financial income (loss) for
the years 2020–2022. 2020 $120,000 2021 (150,000) 2022 180,000
Pretax financial income (loss) and taxable income (loss) were the
same for all years involved. The enacted tax rate was 20% for
2020–2022. Instructions a. Prepare the journal entries for the
years 2020–2022 to record income tax expense, income taxes payable,
and the tax effects of the loss carryforward, assuming that based
on the weight of available evidence, it is more likely...
Marimarsh Corporation reported the following pretax financial income (loss) for the years 2019 to 2021. 2019...
Marimarsh Corporation reported the following pretax financial
income (loss) for the years 2019 to 2021.
2019
$150,000
2020
($400,000)
2021
$200,000
Pretax financial income (loss) and taxable income (loss) were
the same for all years. The applicable tax rates are 30% for 2019,
and 20% for 2020 and 2021.
Instructions:
a) Prepare the journal entry in 2019 to record income tax
expense.
b) Prepare the journal entries in 2020 for the tax effects of
the loss carryforward, assuming that based...
Meyer reported the following pretax financial income (loss) for the years 2012-2016 2012 $240,000 2013 200,000...
Meyer reported the following pretax financial income (loss) for
the years 2012-2016
2012 $240,000
2013 200,000
2014 150,000
2015 (500,000)
2016 180,000
pretax financial income (loss) and taxable income (loss) were
the same for all the years involved. The enacted tax rate was 34%
for 2012 and 2013 and 38% for 2014-2016. Assume the carryback
provision is used first for net operating losses. In 2015, based on
the weight of available evidence, it is more likely than not that
one-fifth...
Nash Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022....
Nash Inc. reported the following pretax income (loss) and
related tax rates during the years 2019–2022.
Pretax Income (loss)
Tax Rate
2019
$65,600
40
%
2020
(147,600)
40
%
2021
164,000
20
%
2022
82,000
20
%
Pretax financial income (loss) and taxable income (loss) were the
same for all years since Nash began business. The tax rates from
2019–2022 were enacted in 2019.
Prepare the journal entries for the years 2020–2022 to record
income taxes payable (refundable), income tax...
Waterway Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022....
Waterway Inc. reported the following pretax income (loss) and
related tax rates during the years 2019–2022.
Pretax Income (loss)
Tax Rate
2019
$92,800
40
%
2020
(208,800)
40
%
2021
232,000
20
%
2022
116,000
20
%
Pretax financial income (loss) and taxable income (loss) were the
same for all years since Waterway began business. The tax rates
from 2019–2022 were enacted in 2019.
a. Prepare the
journal entries for the years 2020-2022 to record income taxes
payable (refundable), income tax...
Tamarisk Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022....
Tamarisk Inc. reported the following pretax income (loss) and
related tax rates during the years 2019–2022.
Pretax Income (loss)
Tax Rate
2019
$88,000
40
%
2020
(198,000)
40
%
2021
220,000
20
%
2022
110,000
20
%
Pretax financial income (loss) and taxable income (loss) were the
same for all years since Tamarisk began business. The tax rates
from 2019–2022 were enacted in 2019.
Prepare the journal entries for the years 2020–2022 to record
income taxes payable (refundable), income tax...
Whispering Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022....
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. Partially
correct answer iconYour answer is partially correct. Prepare the
journal entries for the years 2020–2022...
Whispering Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022....
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...
Concord Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022....
Concord Inc. reported the following pretax income (loss) and
related tax rates during the years 2019–2022.
Pretax Income (loss)
Tax Rate
2019
$70,400
40
%
2020
(158,400)
40
%
2021
176,000
20
%
2022
88,000
20
%
Pretax financial income (loss) and taxable income (loss) were the
same for all years since Concord began business. The tax rates from
2019–2022 were enacted in 2019.
1. Prepare the journal entries for the years 2020–2022 to record
income taxes payable (refundable), income...
Bramble Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022....
Bramble Inc. reported the following pretax income (loss) and
related tax rates during the years 2019–2022.
Pretax Income (loss)
Tax Rate
2019
$43,300
40
%
2020
(194,000)
40
%
2021
244,000
20
%
2022
72,300
20
%
Pretax financial income (loss) and taxable income (loss) were the
same for all years since Bramble began business. The tax rates from
2019–2022 were enacted in 2019.
(a)
Prepare the journal entries for the years 2020–2022 to record
income taxes payable (refundable), income...
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