Concord Corporation report
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 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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Transcribed Image Text:Date
Account Titles and Explanation
(To record benefit from loss carryback.)
(To recognize benefit of loss
carryforward.)
(To record future tax expense.)
Show Transcribed Text
carrytorward.)
(To record future tax expense.)
(To record current tax expense.)
Ĉ
Debit
Credit
Transcribed Image Text:Concord Corporation reported the following income for each of the years indicated. For each year, accounting income and income
for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Concord's policy is to carry back any
tax losses first before carrying forward any remaining losses to future years.
Year
2020
2021
2022
2023
2024
2025
Income/
(Loss)
32,000
45,000
17,000
(111,000 )
(46,000)
82,000
Tax
Rate
30%
33%
35%
38%
32%
32%
Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss
carryforward benefits are judged more likely than not to be realized in the future. Concord follows the future income taxes method
under ASPE. (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.)
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