Bonita Inc. reports the following pretax income (loss) for both book and tax purposes.PretaxYearIncome (Loss)Tax Rate2018$124,00020 %201986,00020 %2020(89,000 )25 %2021126,00025 %The tax rates listed were all enacted by the beginning of 2018. Prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes." (Enternegative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Bonita Inc.Income Statement (Partial)$

The income tax is an expense for business entity which is charged on the generated income for each…

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.

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.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 2MCQ: Tayla Corporation generated $400,000 of taxable income in the 2019. What is Tayla's corporate tax...

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

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 income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes." (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Bonita Inc.
Income Statement (Partial)
$

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