Indigo Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $67,200 25 % 2016 (98,000 ) 20 % 2017 126,000 20 % 2018 42,000 20 % 2019 147,000 20 % 2020 (84,000 ) 25 % 2021 178,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Indigo has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) What entries for income taxes should be recorded for 2016? (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.) Account Titles and Explanation Debit Credit
Indigo Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $67,200 25 % 2016 (98,000 ) 20 % 2017 126,000 20 % 2018 42,000 20 % 2019 147,000 20 % 2020 (84,000 ) 25 % 2021 178,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Indigo has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) What entries for income taxes should be recorded for 2016? (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.) Account Titles and Explanation Debit Credit
Chapter12: Tax Credits And Payments
Section: Chapter Questions
Problem 23P
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Question
Indigo Corporation has pretax financial income (or loss) from 2015 through 2021 as follows.
Pretax financial income (loss) and taxable income (loss) were the same for all years since Indigo has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
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Income (Loss)
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Tax Rate
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| 2015 | $67,200 | 25 | % | |||
| 2016 | (98,000 |
)
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20 | % | ||
| 2017 | 126,000 | 20 | % | |||
| 2018 | 42,000 | 20 | % | |||
| 2019 | 147,000 | 20 | % | |||
| 2020 | (84,000 |
)
|
25 | % | ||
| 2021 | 178,000 | 25 | % |
Pretax financial income (loss) and taxable income (loss) were the same for all years since Indigo has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
(a)
What entries for income taxes should be recorded for 2016? (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.)
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Account Titles and Explanation
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Debit
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Credit
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