axable income and applicable tax rates for C.J. Company’s first four years are shown below. For each year, taxable income and pretax financial income are identical. In the table below, taxable income is before any consideration of NOL carryback and carryforward. The enacted tax rates were known at 1/1/2018. Taxable Income Enacted tax rate 2018 $200 20% 2019 ($300) 15% 2020 $340 25% 2021 $210 25% Assume that C.J. opted to carryforward its 2019 NOL to future years. There was no carryback. Complete the table below for 2018 through 2021 to show the amount of income tax payable to the IRS for each year. Put your answer in the table below. You must show calculations or provide an explanation for the amount shown for tax payable.
Taxable income and applicable tax rates for C.J. Company’s first four years are shown below. For each year, taxable income and pretax financial income are identical. In the table below, taxable income is before any consideration of NOL carryback and carryforward. The enacted tax rates were known at 1/1/2018.
Taxable
Income Enacted tax rate
2018 $200 20%
2019 ($300) 15%
2020 $340 25%
2021 $210 25%
Assume that C.J. opted to carryforward its 2019 NOL to future years. There was no carryback. Complete the table below for 2018 through 2021 to show the amount of income tax payable to the IRS for each year. Put your answer in the table below. You must show calculations or provide an explanation for the amount shown for tax payable.
Year Tax payable Calculations_or explanation _
2018
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2019
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2020
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2021
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- Make journal entries for 2019, 2020, and 2021 for income taxes. Provide supporting calculations (except for taxes payable to the IRS) following each
journal entry .
Income Tax Payable on income after adjustment of all carry forward of losses.
Taxable income is the income which is available for tax calculations after all adjustment.
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