Lindemax Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.)     The tax rates listed were all enacted by the beginning of 2018. Instructions a)  Prepare the journal entries for the years 2018-2021 to record income tax expense (benefit) and income tax payable (refundable) and the tax effects of the loss carryback and carryforward, assuming that the end of 2020 it is probable that the benefits of the loss carryforward will be realized in the future.

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Q: Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of…

A: Part 1 :

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Q: Discord Inc. income tax return shows taxes currently payable for 2020 of $85,000. The company…

A: Deferred tax asset is a non-current asset which shows an advance payment of tax and has a debit…

Q: In 2021, a company performed service for the customers. It will receive payments from the customers…

A: Deferred tax refers to the tax on the timing difference arrives due to difference in carrying amount…

Q: Sheridan Inc. reports the following pretax income (loss) for both book and tax purposes. Year 2023…

A: The deferred tax asset is created when the taxes to be paid as per income tax are lower than the…

Q: GYV Ltd has the following deffered tax balances as at 30 June 2019 DTA        $900000 DTL.…

A: Calculation of Deferred Tax Asset: DTA = ( 900000 / 20 % )          = 4500000          = 4500000 x 5…

Q: Shamrock Inc. (Sham) reported a taxable loss AND an accounting loss of $130,000 in 2022. Sham has…

A: The objective of the question is to calculate the net loss for accounting purposes that will be…

Q: Aquafena Inc. recognized taxable income of $140,000 for the year ended December 31, 2020. Aquafena…

A: Introduction: Journal entries should not be used to record routine transactions such as customer…

Q: Not a graded assignment

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A: Deferred taxes are treated as per the Income Tax Rules. Deferred tax is a liability that is a tax…

Q: Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of…

A: Pretax financial income is the amount of a company makes before taxes are factored in. It's…

Q: For the year ended December 31, 2023, Crane Ltd. reported income before income taxes of $180,000.…

A: Net deferred tax liability for Crane Ltd. for the year ended December 31, 2023, is…

Q: herrod, Inc., reported pretax accounting income of $82 million for 2021. The following information…

A: What is Deferred tax? It is the difference between the asset and liability entries on the balance…

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A: Deferred tax which is described as the tax difference between the current tax and any differential…

Q: At the end of the current year, Newsmax Incorporated has $400,000 of subscriptions received in…

A: The objective of the question is to determine the type of deferred tax that would be expected to be…

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A: The objective of the question is to determine the journal entry Piper, Inc. needs to make to adjust…

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A: Journal entry is the process of recording the business transactions in the accounting books for the…

Q: Mallock Incorpe thousands): 2016 201 $ 160 $ 5 Mallock's fede Required: 1. Prepare 2. Show the

A: Journal entry:The monetary transaction of business is recorded in the books of accounts called the…

Q: the total income tax expense for the current period.  b. the prima facie tax on accounting profit…

A: The tax is an expense for the company but becomes a liability when payable.

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.