Backus Inc. reported a loss of $500,000 in 2022. The company reported taxable income of $125,000 in 2020 and $230,000 in 2021. It has no permanent or temporary differences, and its tax rateis 35%. What is the necessary journal entry for 2022? Backus reported taxable income of $250,000 in 2023. What is the necessary journal entry for 2023?What is the necessary journal entry for 2022? (Record debits first, then credits. Exclude explanations from any journal entries.)AccountDecember 31, 2022

The 2022 tax loss can be carried back to offset taxable income from previous years under loss…

Answered: Backus Inc. reported a loss of $500,000…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

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Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 20CE

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Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)
Brent Inc. reported a loss of $540,000 in 2022. The company reported taxable income of $115,000 in 2020 and $229,000 in 2021. It has no permanent or temporary differences, and its tax rate is 25%. What is the necessary journal entry for 2022? Brent reported taxable income of $258,000 in 2023. What is the necessary journal entry for 2023? What is the necessary journal entry for 2022? (Record debits first, then credits. Exclude explanations from any journal entries.) Account What is the necessary journal entry for 2023? Account December 31, 2022 December 31, 2023
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In its first three years of operations, Vaden Corp. experienced the following income/(losses): Year Income/(Loss) Tax Rate 2020 50,000 0.35 2021 40,000 0.30 2022 (130,000) 0.30 Required: Prepare the journal entry that Vaden needs to make in 2022, assuming that it is more likely than not that any loss carryforward will be realized? Prepare the income tax section of the income statement for 2022, beginning with Pretax Net Loss. What additional entry would Vaden need to make in 2022 if it is more likely than not that any loss carryforward will NOT be realized? I need only answer 3
.) Krondor Co. reported book income of $10,359,000 for the year ended December 31, 2022, its first year of operations. Their tax account reported that their taxable income for the year was $9,323,000. If the change in amounts was caused by a temporary difference that will reverse in 2023, and if Krondor Co. tax rate is 30% in 2022 and 35% in 2023, what should the company report as either a deferred tax asset or liability for 2022? (1 ?' O $310,800 deferred tax asset O $362,600 deferred tax liability $362,600 deferred tax asset O $310,800 deferred tax liability
Tamarisk Inc. had pretax financial income of $139,400 in 2025. Included in the computation of that amount is insurance expense of $4,400 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $10,000. Prepare Tamarisk's journal entry to record 2025 taxes, assuming a tax rate of 30%. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit
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During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss of $405,000 for financial reporting and tax purposes. During 2025, Baginski reported income of $225,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required: Prepare the journal entry to recognize Baginski’s 2025 tax expense or tax benefit. Show the lower portion of the 2025 income statement that reports income tax expense or benefit.
During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss of $360,000 for financial reporting and tax purposes. During 2025, Baginski reported income of $200,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required: Prepare the journal entry to recognize Baginski’s 2025 tax expense or tax benefit. Show the lower portion of the 2025 income statement that reports income tax expense or benefit.
Ashvinbhai
Shamrock Inc. (Sham) reported a taxable loss AND an accounting loss of $130,000 in 2022. Sham has before - tax accounting income for the prior two years as follows: 2021: $80,000 2020: $60,000 Assuming that Sham uses the carryback provisions and that the income tax rate is 25% for all years, what amount of net loss for accounting purposes will be reported in 2022?
During 2024, its first year of operations, Baginski Steel Corporation reported a net operating loss of $405,000 for financial reporting and tax purposes. During 2025, Baginski reported income of $225,000 for financial reporting and tax purposes. The enacted tax rate is 25%. Required: 1. Prepare the journal entry to recognize Baginski's 2025 tax expense or tax benefit. 2. Show the lower portion of the 2025 income statement that reports income tax expense or benefit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show the lower portion of the 2025 income statement that reports income tax expense or benefit. 0

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