JG Ltd. has been in business for five years and incurs a loss of $520,000 in...

 

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JG Ltd. has been in business for five years and incurs a loss of $520,000 in 20x15. The company has no temporary differences. The history of the company's earnings since they began operations is as follows: Тахаble Taxes paid Year Income (recovered) (loss) $300,000 -$150,000 $330,000 S80,000 $114,000 -57,000 125,400 30,400 20x11 20x12 20x13 20x14 The tax rate has been constant at 38%. Required: 1. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is greater than 50% 2. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is less than 50% JG Ltd. has been in business for five years and incurs a loss of $520,000 in 20x15. The company has no temporary differences. The history of the company's earnings since they began operations is as follows: Тахаble Taxes paid Year Income (recovered) (loss) $300,000 -$150,000 $330,000 S80,000 $114,000 -57,000 125,400 30,400 20x11 20x12 20x13 20x14 The tax rate has been constant at 38%. Required: 1. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is greater than 50% 2. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is less than 50%

Answer rating: 100% (QA)

PART1 Year Particulars Debit Credit 2015 Income tax receivable carry back 155... View the full answer