In 2016 to 2018, respectively, Flotsam Beachcombers earned taxable income of $50,000, $200,000, and $30,000. The tax
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In 2016 to 2018, respectively, Flotsam Beachcombers earned taxable income of $50,000, $200,000, and $30,000. The tax rate for each year was 20%, 25%, and 10%. It is now the end of 2019 and the company has incurred a loss of $380,000 for tax purposes and has earned an accounting loss before tax of $200,000. The difference between accounting and taxable income is due to capital cost allowance exceeding depreciation expense. The tax rate is currently 25%.
Required:
Record the journal entries for income tax expense and income tax payable or receivable for 2019.
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