Blossom Inc reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposesAccountingIncomeYear(Loss)Tax Ratei2021 $124,000202291,0002023 (287,000)2024 218,000The tax rates lated were all enacted by the beginning of 2021. Blossom reports under the ASPE future Income tavas method.Prepare the journal entries for each of the years 2021 to 2024 to record Income tax. Assume the texclosa la first carried back andthat at the end of 2023, the loss carry forward benefits are judged more likely than not to be realized in the future. (List all debitentries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in theproblem)DateAccount Titles and Explanation(To record benefit from losa canryback)(To record deferred benefit from loss carryforward)(To record current)(To record deferred tax expen)DebitCredit

Deffered Tax Assets :— A deferred tax asset is an asset to the Company that usually arises when the…

2023 in reports the following pre-tax income (ossa foron 0 Accounting Income (Loss) $124.000 91000 (287,000) 218,000 he tax rates llated were all enacted by the beginning of 2021. Blossom reports under the ASPE future Income tax method. Prepare the journal entries for each of the years 2021 to 2024 to record Income tax Assume the taxaracaedback and that at the end of 2022, the loss carryforward benefits are judged mora kaly than not to be realized the entries before credit entries. Credit account titles are autom ally indented when the amount is entry is required, select "No Entry for the account titles and enter O for the amounts Record jo Date Account Titles and Explanation (To record from locayback) (To record deferred benefit from i carryforand) (Toracordurxx) Creme 4. Do not indent manually no ries in the order presented in the Debit Credit

2023 in reports the following pre-tax income (ossa foron 0 Accounting Income (Loss) $124.000 91000 (287,000) 218,000 he tax rates llated were all enacted by the beginning of 2021. Blossom reports under the ASPE future Income tax method. Prepare the journal entries for each of the years 2021 to 2024 to record Income tax Assume the taxaracaedback and that at the end of 2022, the loss carryforward benefits are judged mora kaly than not to be realized the entries before credit entries. Credit account titles are autom ally indented when the amount is entry is required, select "No Entry for the account titles and enter O for the amounts Record jo Date Account Titles and Explanation (To record from locayback) (To record deferred benefit from i carryforand) (Toracordurxx) Creme 4. Do not indent manually no ries in the order presented in the Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

Intraperiod Tax Allocation Wright Company reports the following information for the year ended December 31, 2019: Required: 1. Prepare the year-end journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the preceding information. 2. Prepare Wrights 2019 income statement and statement of retained earnings.
Bridgeport Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Year 2018 2019 2020 2021 (a) Accounting Income 2019 (Loss) $131.000 2020 2021 97,000 (306,000) 223.000 The tax rates listed were all enacted by the beginning of 2018. Bridgeport reports under the ASPE future/deferred income taxes method. 2018 Deferred Tax Expense Tax Rate 25 % Prepare the journal entries for each of the years 2018 to 2021 to record income tax. Assume the tax loss is first carried back, and that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future. (Credit account titles are automatically indented when the 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) de 25 % 30 % 30 % Prepare the journal entries for each of the years 2018 to 2021 to record income tax Assume the tax loss is first carried back, and that at…
Bonita Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2018 $124,000 20 % 2019 86,000 20 % 2020 (89,000 ) 25 % 2021 126,000 25 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (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 0 for the amounts.)
The pretax financial income (or Loss) figures for Limerick co. are as follows: 2017 83,000 2018 (53,000) 2019 (36,000) 2020 115,000 2021 104,000 Pretax financial income( or loss) and taxable income(loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entires for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforward. All income and losses relate to normal operations (in recording the benefits of a loss carryforward assume that no valuation account is deemed necessary.
Current Attempt in Progress Sheridan Inc. reports the following pretax income Doss) for both financial reporting purposes and tax purposes. Year 2018 2019 2020 2021 The tax rates listed were all enacted by the beginning of 2018. (c) 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 for the amounts) 2018 Pretax Income (Loss) $128.000 96.000 (214.000) 310.000 2019 Date Account Titles and Explanation 2020 2021 Tax Rate 17 % 17% 19 % 19 % List of Accounts Safor Later Debit Credit Attempts:0 of 4 used Sub (b) The parts of this question must be completed in order. This…
Cullumber Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Year 2021 2022 2023 2024 Accounting Income (Loss) (a) $128,000 93,000 (300,000) 219,000 Tax Rate 25 % 25 % 30 % 30 % The tax rates listed were all enacted by the beginning of 2021. Cullumber reports under the ASPE future income taxes method. Assume that Cullumber uses a valuation allowance to account for future tax assets, and also that it is more likely than not that 25% of the carryforward benefits will not be realized. Prepare the journal entries for 2023 and 2024. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.)
Brush Company has the following income before income tax and estimated effective annual income tax rates for the first three quarters of 2019.(Photo)Required:What should be Brush company estimated income for "First" quarter income statement? Select one:a. $54,600b. $39,000c. $46,800d. None of the other points
a. Compute for Daniel's pre-tax accounting profit for the years 2020, 2021, 2022, and 2023. b. Compute for the belance of deferred tax liability at the end of 2020, 2021, 2022, and 2023. c. Prepare journal entries for current income taxes and deferred income taxes for years 2020, 2021, 2022, and 2023.
Ivanhoe Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Year 2021 2022 2023 2024 Accounting Income (Loss) $129,000 (a) 101,000 (304,000) 222.000 Tax Rate Date 25 % 25 % 30 % The tax rates listed were all enacted by the beginning of 2021. Ivanhoe reports under the ASPE future income taxes method. 30 % Assume that Ivanhoe uses a valuation allowance to account for future tax assets, and also that it is more likely than not that 25% of the carryforward benefits will not be realized. Prepare the journal entries for 2023 and 2024. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.) Account Titles and Explanation (To record benefit from loss carryback) Debit Credit
XYZ Company reported the following pretax income (loss) and related tax rates during the years 2016-2021. Year Pretax Income (loss) Таx rate 2016 $75,000 30% 2017 150,000 30% 2018 240,000 40% 2019 (540,000) 48% 2020 210,000 40% 2021 300,000 42% a. Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax effects of the loss. Assume that XYZ elects the carryback provision where possible and it is probable that it will realize benefits of any loss carryforward. b. Prepare the portion of the income statement that presents your answer in part (a) for the year ended 2019.
16. Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year ended November 30, 2020. Rent receivable – Nov. 30, 2020 is P1,060,000; Rent receivable – Nov. 30, 2019 is P800,000; and Uncollectible rent written off during the fiscal year is P30,000. Under accrual basis, what amount should be reported as rent revenue? a. P1,920,000 b. P2,240,000 c. P2,500,000 d. P1,980,000
Zhao Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Year 2021 2022 2023 2024 Accounting Income (Loss) $ 20,000 50,000 (150,000) 120,000 Tax Rate 25% 28% 30% 30% The tax rates listed were all enacted by the beginning of 2021. Zhao reports under the ASPE future income taxes method and uses a valuation allowance to account for future tax assets. Instructions a) Assume that at the end of 2023 it is more likely than not that 20% of the carry forward benefits will not be realized. Prepare the journal entries for 2023 and 2024. b) Based on your entries in part (a), prepare the income tax section of the 2023 and 2024 income statements, beginning with the line "Operating income (loss) before income tax." c) Indicate how the future tax asset account will be reported on the December 31, 2023 and 2024 balance sheets. d) Repeat part (c) assuming Zhao Inc. follows IFRS.