Wildhorse Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes....
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Wildhorse Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year 2018 2019 2020 2021 Pretax Income (Loss) $112,000 Tax Rate 17% 97,000 17% (236,000) 19% 314,000 19 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for the years 2018-2021 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2020 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation 2018 Income Tax Expense 2019 Income Tax Expense 2020 Income Tax Payable 2021 Income Tax Payable Deferred Tax Asset Benefit Due to Loss Carryforward Income Tax Expense Deferred Tax Asset Income Tax Payable Debit 19040 16490 5130 59660 Credit 19040 16490 5130 5130 54530 Wildhorse Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year 2018 2019 2020 2021 Pretax Income (Loss) $112,000 Tax Rate 17% 97,000 17% (236,000) 19% 314,000 19 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for the years 2018-2021 to record income tax expense (benefit) and income taxes payable (refundable) and the tax effects of the loss carryforward, assuming that at the end of 2020 the benefits of the loss carryforward are judged more likely than not to be realized in the future. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation 2018 Income Tax Expense 2019 Income Tax Expense 2020 Income Tax Payable 2021 Income Tax Payable Deferred Tax Asset Benefit Due to Loss Carryforward Income Tax Expense Deferred Tax Asset Income Tax Payable Debit 19040 16490 5130 59660 Credit 19040 16490 5130 5130 54530
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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