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2022 2023 2024 2025 Current Tax Expense Income Tax Payable Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) Future Tax Asset Future Tax Benefit (To recognize benefit of loss carryforward.) Future Tax Liability Future Tax Benefit Future Tax Expense Income Tax Payable (To record future tax expense.) Current Tax Expense 7000 42560 -26387 7000 28402 15680

2022 2023 2024 2025 Current Tax Expense Income Tax Payable Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) Future Tax Asset Future Tax Benefit (To recognize benefit of loss carryforward.) Future Tax Liability Future Tax Benefit Future Tax Expense Income Tax Payable (To record future tax expense.) Current Tax Expense 7000 42560 -26387 7000 28402 15680

FINANCIAL ACCOUNTING
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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2022 2023 2024 2025 Current Tax Expense Income Tax Payable Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) Future Tax Asset Future Tax Benefit (To recognize benefit of loss carryforward.) Future Tax Liability Future Tax Benefit Future Tax Expense Income Tax Payable (To record future tax expense.) Current Tax Expense Income Tax Payable 7000 42560 -26387 7000 28402 15680
Transcribed Image Text:2022 2023 2024 2025 Current Tax Expense Income Tax Payable Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) Future Tax Asset Future Tax Benefit (To recognize benefit of loss carryforward.) Future Tax Liability Future Tax Benefit Future Tax Expense Income Tax Payable (To record future tax expense.) Current Tax Expense Income Tax Payable 7000 42560 -26387 7000 28402 15680
Cullumber Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Cullumber's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Year 2020 2021 2022 2023 2024 2025 Income/ (Loss) 30,000 48,000 20,000 (112,000) (49,000 ) 80,000 Tax Rate 30% 33% 35% 38% 32% 32% Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Cullumber follows the future income taxes method under ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
Transcribed Image Text:Cullumber Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Cullumber's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Year 2020 2021 2022 2023 2024 2025 Income/ (Loss) 30,000 48,000 20,000 (112,000) (49,000 ) 80,000 Tax Rate 30% 33% 35% 38% 32% 32% Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Cullumber follows the future income taxes method under ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
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