Question (1) Baratheon company had no temporary differnces before the year of 2018, at the end of 2018 the company had only one temporary differnces which is tracked in 4 years as follows: 2018 2019 2020 2021 20,000 70,000 (65,000) (25,000) 20% 25% 30% 30% Required: journalize the required journal entries for the years 2019-2022 and prepare the income statement for 2020 and 2021 Question (3) you have the following section extracted from the income statement of Stark company Pretax income ? Income tax expense Current Deferred 20,000 ? 18,000 assume that the tax rate for 2020 and 2021 were enacted during 2020, and the tax rate for 2018 and 2019 were enacted in 2015. at the end of 2018 and 2019, the company did not expect to achieve profit in future years, but at the end of 2020 the company circumstances have changed and the company did expect future profit. Required: if Taxable income for all years were 200,000, record all the required journal entries for 2018, 2019, 2020 Assume that the tax rate for all years is 25%, and the company had only one temporary differnces and no Permenant differnces and in all previous years, taxable income and pretax income were the same, answer the followings: 1. How much is pretax income? 2. How much is taxable income? 3. Is this differnces a DTA or a DTL? 4. is this an originating or reversal? 5. how much is the deferred tax portion? Question (2) Lannister company started operating in 2019, and you have the following operating income for the years 2019-2022, assuming that the company had no temporary or permanent differnces during those years: End of document I 2022 2019 50,000 20% 2020 (120,000) 25% 2021 200,000 45% (110,000) 45% assume that tax rate was enacted at the beginning of 2019. assume that the company uses the carryback option for net operating losses assume that the company did expect to operate profitably in the future Question (1) Baratheon company had no temporary differnces before the year of 2018, at the end of 2018 the company had only one temporary differnces which is tracked in 4 years as follows: 2018 2019 2020 2021 20,000 70,000 (65,000) (25,000) 20% 25% 30% 30% Required: journalize the required journal entries for the years 2019-2022 and prepare the income statement for 2020 and 2021 Question (3) you have the following section extracted from the income statement of Stark company Pretax income ? Income tax expense Current Deferred 20,000 ? 18,000 assume that the tax rate for 2020 and 2021 were enacted during 2020, and the tax rate for 2018 and 2019 were enacted in 2015. at the end of 2018 and 2019, the company did not expect to achieve profit in future years, but at the end of 2020 the company circumstances have changed and the company did expect future profit. Required: if Taxable income for all years were 200,000, record all the required journal entries for 2018, 2019, 2020 Assume that the tax rate for all years is 25%, and the company had only one temporary differnces and no Permenant differnces and in all previous years, taxable income and pretax income were the same, answer the followings: 1. How much is pretax income? 2. How much is taxable income? 3. Is this differnces a DTA or a DTL? 4. is this an originating or reversal? 5. how much is the deferred tax portion? Question (2) Lannister company started operating in 2019, and you have the following operating income for the years 2019-2022, assuming that the company had no temporary or permanent differnces during those years: End of document I 2022 2019 50,000 20% 2020 (120,000) 25% 2021 200,000 45% (110,000) 45% assume that tax rate was enacted at the beginning of 2019. assume that the company uses the carryback option for net operating losses assume that the company did expect to operate profitably in the future