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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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