At the end of 2013, Keil Company reports a pretax operating loss of $80,000 for both financial
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At the end of 2013, Keil Company reports a pretax operating loss of $80,000 for both financial reporting and income tax purposes. Prior to 2013, Keil had been successful and had reported and paid taxes on the following pretax financial income and taxable income: 2010, $37,000; 2011, $50,000; and 2012, $54,000. Keil had been subject to tax rates of 20% in 2010, 25% in 2011, and 30% in 2012.
Required:
1. Prepare Keil's income tax journal entry at the end of 2013.
2. Prepare the lower portion of Keil's 2013 income statement.
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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