17 18 019 20 1 4. A Company reported an operating loss of $180,000 for financial reporting and $110,000 for tax purposes in 2021.The difference is due to a permanent difference. The enacted tax rate is 30% for 2021 and all future years. Assume that A operates in an industry for which a NOL can be carried back two years and elects a loss carryback. No valuation allowance is needed for any deferred tax assets. Taxable income, tax rates, and income taxes paid in A's first four years of operations were as follows: Taxable Tax Taxes income rates paid $30,000 30% $9,000 65,000 30% 10,500 40,000 50,000 40% 16,000 35% 17,500 equired: ) Prepare the required journal entries to record A's tax provision for the year 2021. -) Compute A's net loss for 2021.
17 18 019 20 1 4. A Company reported an operating loss of $180,000 for financial reporting and $110,000 for tax purposes in 2021.The difference is due to a permanent difference. The enacted tax rate is 30% for 2021 and all future years. Assume that A operates in an industry for which a NOL can be carried back two years and elects a loss carryback. No valuation allowance is needed for any deferred tax assets. Taxable income, tax rates, and income taxes paid in A's first four years of operations were as follows: Taxable Tax Taxes income rates paid $30,000 30% $9,000 65,000 30% 10,500 40,000 50,000 40% 16,000 35% 17,500 equired: ) Prepare the required journal entries to record A's tax provision for the year 2021. -) Compute A's net loss for 2021.
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 13P
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Question
![2017
2018
2019
2020
4. A Company reported an operating loss of $180,000 for financial reporting and
$110,000 for tax purposes in 2021.The difference is due to a permanent difference.
The enacted tax rate is 30% for 2021 and all future years. Assume that A operates in
an industry for which a NOL can be carried back two years and elects a loss
carryback. No valuation allowance is needed for any deferred tax assets. Taxable
income, tax rates, and income taxes paid in A's first four years of operations were as
follows:
Taxable Tax Taxes
income rates paid
$30,000 30% $9,000
30% 10,500
65,000
40,000 40% 16,000
50,000
35% 17,500
Required:
1.) Prepare the required journal entries to record A's tax provision for the year 2021.
2.) Compute A's net loss for 2021.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F921cc77b-bdd2-4591-a6c9-830d1a5259dc%2F3a0250d8-e1ef-4c1e-81e6-d017d45cb418%2Fi02iwm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2017
2018
2019
2020
4. A Company reported an operating loss of $180,000 for financial reporting and
$110,000 for tax purposes in 2021.The difference is due to a permanent difference.
The enacted tax rate is 30% for 2021 and all future years. Assume that A operates in
an industry for which a NOL can be carried back two years and elects a loss
carryback. No valuation allowance is needed for any deferred tax assets. Taxable
income, tax rates, and income taxes paid in A's first four years of operations were as
follows:
Taxable Tax Taxes
income rates paid
$30,000 30% $9,000
30% 10,500
65,000
40,000 40% 16,000
50,000
35% 17,500
Required:
1.) Prepare the required journal entries to record A's tax provision for the year 2021.
2.) Compute A's net loss for 2021.
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