Meyer reported the following pretax financial income (loss) for the years 2020-2022. 2020 $120,000 2021 (150,000) 2022 190,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020-2022.
Meyer reported the following pretax financial income (loss) for the years 2020-2022. 2020 $120,000 2021 (150,000) 2022 190,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020-2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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rmn.2
Transcribed Image Text:Meyer reported the following pretax financial income (loss) for the years 2020-2022.
2020 $120,000
2021 (150,000)
2022 190,000
Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for
2020-2022.
Prepare the journal entries for the years 2020-2022 to record income tax expense, income taxes payable, and the tax effects
of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the
benefits of the loss carryforward will not be realized. (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.)
Debit
Date Account Titles and Explanation
2020
2021
2022
(To record refund)
(To record allowance)
(To record income taxes)
(To adjust allowance)
eTextbook and Media
List of Accounts
Prepare the income tax section of the 2021 income statement beginning with the line "Income (loss) before income taxes.".
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Meyer
Income Statement (Partial)
Credit
$
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