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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