2018 Income Tax Expense 24,000 Income Tax Payable 24,000 2019 Income Tax Expense 18,000 Income Tax Payable 18,000 2020 Income Tax Expense 70,000 Deferred Tax Asset 70,000 (To record income taxes.) Income Tax Expense 59,500 Allowance to Reduce Defer 59,500 (To record allowance.) 2021 [Income Tax Expense 30,000 Deferred Tax Asset 30,000 (To record income taxes.) Allowance to Reduce Defer 8750 Income Tax Expense 8750
2018 Income Tax Expense 24,000 Income Tax Payable 24,000 2019 Income Tax Expense 18,000 Income Tax Payable 18,000 2020 Income Tax Expense 70,000 Deferred Tax Asset 70,000 (To record income taxes.) Income Tax Expense 59,500 Allowance to Reduce Defer 59,500 (To record allowance.) 2021 [Income Tax Expense 30,000 Deferred Tax Asset 30,000 (To record income taxes.) Allowance to Reduce Defer 8750 Income Tax Expense 8750
Chapter3: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 53P
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Question
Exercise 19-24
Beilman Inc. reports the following pretax income (loss) for both book and tax purposes.
The tax rates listed were all enacted by the beginning of 2018.
|
Year
|
Pretax
Income (Loss) |
Tax Rate
|
||||
| 2018 | $120,000 | 20 | % | |||
| 2019 | 90,000 | 20 | % | |||
| 2020 | (280,000) | 25 | % | |||
| 2021 | 120,000 | 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 (refundable), 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.)
Transcribed Image Text:2018
Income Tax Expense
24,000
Income Tax Payable
24,000
2019
Income Tax Expense
18,000
Income Tax Payable
18,000
2020
Income Tax Expense
70,000
Deferred Tax Asset
70,000
(To record income taxes.)
Income Tax Expense
59,500
Allowance to Reduce Defer
59,500
(To record allowance.)
2021
[Income Tax Expense
30,000
Deferred Tax Asset
30,000
(To record income taxes.)
Allowance to Reduce Defer
8750
Income Tax Expense
8750
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