At the end of 2019, Keil Company reports a pretax operating loss of $80,500 for both financial reporting and income tax purposes. Prior to 2019, Keil had been successful and is expected to be successful in the future. The tax rate for 2019 and future years is 21%. Required: 1. Prepare Keil’s income tax journal entry at the end of 2019. 2. Prepare the lower portion of Keil’s 2019 income statement.
At the end of 2019, Keil Company reports a pretax operating loss of $80,500 for both financial reporting and income tax purposes. Prior to 2019, Keil had been successful and is expected to be successful in the future. The tax rate for 2019 and future years is 21%. Required: 1. Prepare Keil’s income tax journal entry at the end of 2019. 2. Prepare the lower portion of Keil’s 2019 income statement.
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 14P
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At the end of 2019, Keil Company reports a pretax operating loss of $80,500 for both financial reporting and income tax purposes. Prior to 2019, Keil had been successful and is expected to be successful in the future. The tax rate for 2019 and future years is 21%.
Required:
1. | Prepare Keil’s income tax |
2. | Prepare the lower portion of Keil’s 2019 income statement. |
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