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2018 Tincome 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 112,000 [Allowance to Reduce Defer 30,000 (To record allowance.) 2021 Tincome Tax Expense Deferred Tax Asset (To record income taxes.) Allowance to Reduce Defer Income Tax Expense

2018 Tincome 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 112,000 [Allowance to Reduce Defer 30,000 (To record allowance.) 2021 Tincome Tax Expense Deferred Tax Asset (To record income taxes.) Allowance to Reduce Defer Income Tax Expense

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 12P
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Exercise 19-24

Beilman Inc. reports the following pretax income (loss) for both book and tax purposes.

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.)
 
 
2018 Tincome 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 112,000 [Allowance to Reduce Defer 30,000 (To record allowance.) 2021 Tincome Tax Expense Deferred Tax Asset (To record income taxes.) Allowance to Reduce Defer Income Tax Expense
Transcribed Image Text:2018 Tincome 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 112,000 [Allowance to Reduce Defer 30,000 (To record allowance.) 2021 Tincome Tax Expense Deferred Tax Asset (To record income taxes.) Allowance to Reduce Defer Income Tax Expense
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