Principal Services Group had a 2021 Net Loss of $460,000. The company tax rate is 27% and

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Principal Services Group had a 2021 Net Loss of $460,000. The company tax rate is 27% and pre-tax income for the years 2022, 2023, and 2024 were $190,000, $630,000, and $430,000 respectively.

Answer the following:

A. Provide the journal entry for 2021.

B. Provide the journal entry for 2023.

Note: you must specify whether the deferred tax account is an asset or liability.

Related Book For answer-question

Financial Accounting in an Economic Context

ISBN: 978-1119444367

10th edition

Authors: Jamie Pratt

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Posted Date: Aug 03, 2022 05:25 AM

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Principal Services Group had a 2021 Net Loss of $460,000. The company tax rate is 27% and

Question:

Expert Answer:

A The journal entry for 2021 would be as follows Accounts Receivable 460000 Deferred Tax Asset 27 x ... View the full answer

Financial Accounting in an Economic Context

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