The following data represents the complete taxable income history for a corporation: Year Taxable Income Tax Rate 2014 $15,000 30% 2015 10,000 30% 2016 20,000 28% 2017 15,000 27% 2018 (60,000) 25% 2019 (25,000) 28% 2020 55,000 30% Tax rates are effective for the year indicated. The rates were enacted in the year in which they became effective. Taxable income (loss) was equal to accounting income (loss) in each year. Required: Prepare income tax entries for 2018, 2019 and 2020. In any year, management estimates the corporation will be able to utilize all loss carryforward balances.
The following data represents the complete taxable income history for a corporation: Year Taxable Income Tax Rate 2014 $15,000 30% 2015 10,000 30% 2016 20,000 28% 2017 15,000 27% 2018 (60,000) 25% 2019 (25,000) 28% 2020 55,000 30% Tax rates are effective for the year indicated. The rates were enacted in the year in which they became effective. Taxable income (loss) was equal to accounting income (loss) in each year. Required: Prepare income tax entries for 2018, 2019 and 2020. In any year, management estimates the corporation will be able to utilize all loss carryforward balances.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 26CE
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