Carla Vista Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pretax Income Year (Loss) Tax Rate 2023 $113,000 17% 2024 107,000 17% 2025 (240,000) 19% 2026 309,000 19% The tax rates listed were all enacted by the beginning of 2023. Prepare the journal entries for 2025 and 2026, assuming that based on the weight of available evidence, it is more likely than not that one-fourth of the benefits of the loss carryforward will not be realized. (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. Record journal entries in the order presented in the problem.)

Carla Vista Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Pretax Income Year (Loss) Tax Rate 2023 $113,000 17% 2024 107,000 17% 2025 (240,000) 19% 2026 309,000 19% The tax rates listed were all enacted by the beginning of 2023. Prepare the journal entries for 2025 and 2026, assuming that based on the weight of available evidence, it is more likely than not that one-fourth of the benefits of the loss carryforward will not be realized. (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. Record journal entries in the order presented in the problem.)

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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I tried the following: Income from continuing Operations before taxes: 330,800 Income Tax Expense: 132,320 Income from continuing operations after taxes: 198,480 None of these answers are correct. Please assist!
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