In 2014 its first year of operations, Z reported a loss for tax purposes. Z has a fiscal year end of June 30. Z follows IFRS. Z reported the following pre-tax incomes (losses) for both financial reporting and tax purposes for its first 5 years:

Year                   Accounting Income (Loss)                 Tax Rate

2014                      ($128,154)                                         30% 

2015                         750,200                                          30% 

2016                       898,951                                           30%

 2017                       (2,689,897)                                      39%  

2018                         1,400,863                                       39%  

Explain how to do the journal entries for income tax for 2014 to 2018. losses are carried back, where applicable. It is more likely than not that the company will have sufficient future taxable income to use any tax losses available to be carried forward.

Answer rating: 100% (QA)

Assuming the company is profitable in both years 2014 Income tax expense 128154 x 30 38... View the full answer