Nancy Jackson Corporation has pretax financial income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $59,520 25% 2021 (86,800) 20% 2022 111,600 20% 2023 37,200 20% 2024 130,200 20% 2025 (74,400) 25% 2026 158,800 25% Pretax financial income (loss) and taxable income (loss) were the same for all years since Jackson has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (b) Indicate what the income tax expense portion of the income statement for 2021 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)
Nancy Jackson Corporation has pretax financial income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $59,520 25% 2021 (86,800) 20% 2022 111,600 20% 2023 37,200 20% 2024 130,200 20% 2025 (74,400) 25% 2026 158,800 25% Pretax financial income (loss) and taxable income (loss) were the same for all years since Jackson has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (b) Indicate what the income tax expense portion of the income statement for 2021 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nancy Jackson Corporation has pretax financial income (or loss) from 2020 through 2026 as follows.
Income (Loss) Tax Rate
2020
$59,520
25%
2021
(86,800)
20%
2022
111,600
20%
2023
37,200
20%
2024
130,200
20%
2025
(74,400)
25%
2026
158,800
25%
Pretax financial income (loss) and taxable income (loss) were the same for all years since Jackson has been in business. In recording the
benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
(b)
Indicate what the income tax expense portion of the income statement for 2021 should look like. Assume all income (loss) relates
to continuing operations. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
NANCY JACKSON CORPORATION
Income Statement (Partial)
For the Year Ended December 31, 2021
Expenses
Net Income/(Loss)
$
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