ccounting Tyre Recycling Inc. reported the following pre-tax accounting incomes (losses): Accounting (loss)/income Tax rates* 2021 $10,000 25% 2022 55,000 20% 2023 (112,000) 20% 2024 21,000 19% -for 2024 and beyond All enacted in 2021 The only timing difference was in 2023 when warranty expense was $40,000 and warranties paid out in cash was $30,000. For any losses, any carrybacks possible are done first, and then it is probable that 80% of them not carried back will be applicable against any future taxable income. Required: a) Prepare journal entries to record the tax implications for 2023. Show supporting information.
ccounting
Tyre Recycling Inc. reported the following pre-tax accounting incomes (losses):
Accounting (loss)/income Tax rates*
2021 $10,000 25%
2022 55,000 20%
2023 (112,000) 20%
2024 21,000 19% -for 2024 and beyond
- All enacted in 2021
The only timing difference was in 2023 when warranty expense was $40,000 and warranties paid out in cash was $30,000. For any losses, any carrybacks possible are done first, and then it is probable that 80% of them not carried back will be applicable against any future taxable income.
Required:
a) Prepare
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