Toner Corporation computed the following taxable income and loss: 2020 taxable income, $10,000 and 2021 tax-...

 

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Toner Corporation computed the following taxable income and loss: 2020 taxable income, $10,000 and 2021 tax- able loss, $40,000. At the end of 2021, Toner made the following estimates: 2022 taxable income, $4,000, 2023 taxable income, $11,000, and 2024 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. The tax rates are 25% for years 2020, 2021, and 2022; and 30% for years 2023 and 2024. Required a. Provide the income tax entry for 2021. b. Provide the income tax entry for 2022, assuming that the actual taxable income was $6,000 (tax rate, 25%). c. Provide the income tax entry for 2023, assuming that 2022 results were as described in (c), and that the ac- tual 2023 taxable income was $13,000. d. Provide the entry for 2024, assuming results for 2022 and 2023 as described above and assuming that the actual 2024 taxable income was $45,000. Toner Corporation computed the following taxable income and loss: 2020 taxable income, $10,000 and 2021 tax- able loss, $40,000. At the end of 2021, Toner made the following estimates: 2022 taxable income, $4,000, 2023 taxable income, $11,000, and 2024 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. The tax rates are 25% for years 2020, 2021, and 2022; and 30% for years 2023 and 2024. Required a. Provide the income tax entry for 2021. b. Provide the income tax entry for 2022, assuming that the actual taxable income was $6,000 (tax rate, 25%). c. Provide the income tax entry for 2023, assuming that 2022 results were as described in (c), and that the ac- tual 2023 taxable income was $13,000. d. Provide the entry for 2024, assuming results for 2022 and 2023 as described above and assuming that the actual 2024 taxable income was $45,000.

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Required Date Account Name Debit Credit Remarks a Dec 312021 Deferred Tax Asset 10000 40000 25 Inco... View the full answer