Ivanhoe Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Year 2021 2022 2023 2024 Accounting Income (Loss) $129,000 101,000 (304,000) (a) 222,000 Tax Rate Date 25 % 25 % 30 % The tax rates listed were all enacted by the beginning of 2021. Ivanhoe reports under the ASPE future income taxes method. 30 % Assume that Ivanhoe uses a valuation allowance to account for future tax assets, and also that it is more likely than not that 25% of the carryforward benefits will not be realized. Prepare the journal entries for 2023 and 2024. (List all debit entries before credit entries. 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.) Account Titles and Explanation Debit Credit
Ivanhoe Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Year 2021 2022 2023 2024 Accounting Income (Loss) $129,000 101,000 (304,000) (a) 222,000 Tax Rate Date 25 % 25 % 30 % The tax rates listed were all enacted by the beginning of 2021. Ivanhoe reports under the ASPE future income taxes method. 30 % Assume that Ivanhoe uses a valuation allowance to account for future tax assets, and also that it is more likely than not that 25% of the carryforward benefits will not be realized. Prepare the journal entries for 2023 and 2024. (List all debit entries before credit entries. 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.) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![(To record future benefit from loss carryforward)
(To adjust future tax asset account to net realizable
value)
(To record current tax expense)
(To record future tax expense)
(To adjust future tax asset account to net realizable
value)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8df9e6ea-1a34-4ae9-b5c3-38d9fc653f72%2F9b5ee072-53e3-4d2a-91bb-55e2b92e510b%2Fq25htcd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(To record future benefit from loss carryforward)
(To adjust future tax asset account to net realizable
value)
(To record current tax expense)
(To record future tax expense)
(To adjust future tax asset account to net realizable
value)
![Ivanhoe Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:
Year
2021
2022
2023
2024
Accounting
Income
(Loss)
$129,000
(a)
101,000
(304,000)
222.000
Tax Rate
Date
25 %
25 %
30 %
The tax rates listed were all enacted by the beginning of 2021. Ivanhoe reports under the ASPE future income taxes method.
30 %
Assume that Ivanhoe uses a valuation allowance to account for future tax assets, and also that it is more likely than not that 25%
of the carryforward benefits will not be realized. Prepare the journal entries for 2023 and 2024. (List all debit entries before credit
entries. 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.)
Account Titles and Explanation
(To record benefit from loss carryback)
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8df9e6ea-1a34-4ae9-b5c3-38d9fc653f72%2F9b5ee072-53e3-4d2a-91bb-55e2b92e510b%2Ftn97vv.jpeg&w=3840&q=75)
Transcribed Image Text:Ivanhoe Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:
Year
2021
2022
2023
2024
Accounting
Income
(Loss)
$129,000
(a)
101,000
(304,000)
222.000
Tax Rate
Date
25 %
25 %
30 %
The tax rates listed were all enacted by the beginning of 2021. Ivanhoe reports under the ASPE future income taxes method.
30 %
Assume that Ivanhoe uses a valuation allowance to account for future tax assets, and also that it is more likely than not that 25%
of the carryforward benefits will not be realized. Prepare the journal entries for 2023 and 2024. (List all debit entries before credit
entries. 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.)
Account Titles and Explanation
(To record benefit from loss carryback)
Debit
Credit
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