Bridgeport Inc. incurred a net operating loss of $578,700 in 2023. Combined income for 2020, 2021,...

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Bridgeport Inc. incurred a net operating loss of $578,700 in 2023. Combined income for 2020, 2021, and 2022 was $457,000. The tax rate for all years is 30%. Assume that it is more likely than not that the entire tax loss carryforward will not be realized in future years. Assume now that Bridgeport earns taxable income of $20,800 in 2024 and that at the end of 2024 there is still too much uncertainty to recognize a deferred tax asset. (a) Your answer is partially correct. Prepare the journal entries that are necessary at the end of 2024 assuming that Bridgeport does not use a valuation allowance account. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Bridgeport Inc. incurred a net operating loss of $578,700 in 2023. Combined income for 2020, 2021, and 2022 was $457,000. The tax rate for all years is 30%. Assume that it is more likely than not that the entire tax loss carryforward will not be realized in future years. Assume now that Bridgeport earns taxable income of $20,800 in 2024 and that at the end of 2024 there is still too much uncertainty to recognize a deferred tax asset. (a) Your answer is partially correct. Prepare the journal entries that are necessary at the end of 2024 assuming that Bridgeport does not use a valuation allowance account. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Answer rating: 100% (QA)

Current tax expenses will be 20800 30 6240 The journal ... View the full answer