Lawson Enterprises experienced an NOL of $567,000 in 2022. Lawson operates in a jurisdiction that allows losses to be carried back two years. The company reported taxable income of$434,000 in 2020 and $327,000 in 2021. The tax rate for all years is 40%. Lawson elects to carryback the NOL. What is the necessary journal entry to record the NOL carryback in the year ofthe loss? Prepare a partial income statement for the year of the loss.What is the necessary journal entry to record the NOL carryback in the year of the loss? (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviation Used: NOL =Net Operating Loss.)AccountDecember 31, 2022

1. Calculate the NOL carryback:2020 taxable income: $434,0002021 taxable income: $327,000Total…

Answered: Lawson Enterprises experienced an NOL…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 33P

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How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Ironwood Corporation has ordinary taxable income of $65,000 in 2019, and a short-term capital loss of $15,000. What is the corporation's tax liability for 2019? $7,500 $5,250 $10,500 $13,650 None of the above
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Sweet Corporation began operations in 2025 and reported pretax financial income of $246,000 for the year. Sweet's tax depreciation exceeded its book depreciation by $39,000. Sweet's tax rate for 2025 and years thereafter is 30%. Assume this is the only difference between Sweet's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (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 Show how the deferred tax liability will be classified on the December 31, 2025, balance sheet. Deferred tax liability should be classified as a on the December 31, 2025, balance sheet.
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 rate is 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.) Account December 31, 2022

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