Cullumber Corporation reported the following income for each of the years indicated. For each year, accounting...
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Cullumber Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Cullumber's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Year 2020 2021 2022 2023 2024 2025 Tax Rate Income/ (Loss) 30,000 48,000 20,000 (112.000 ) 38% (49,000 ) 32% 80,000 30% 33% 35% 32% Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Cullumber follows the future income taxes method under ASPE. (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. Record journal entries in the order presented in the problem.) Cullumber Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Cullumber's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Year 2020 2021 2022 2023 2024 2025 Tax Rate Income/ (Loss) 30,000 48,000 20,000 (112.000 ) 38% (49,000 ) 32% 80,000 30% 33% 35% 32% Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Cullumber follows the future income taxes method under ASPE. (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. Record journal entries in the order presented in the problem.)
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Answer rating: 100% (QA)
Year 2022 IncomeLoss 20000 Tax Rate 35 Taxable Income 20000 Income Tax Expense 20000 35 7000 Deferre... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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