Recording NOL Carryforward Toner Corporation reported the following taxable income and loss: 2020 taxable income, $10,000 and 2021 taxable loss, $40,000. At the end of 2021, Toner made the following estimates: 2022 taxable income, $4,000, 2023 taxable income, $11,000, and 2024 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. The tax rates are 25% for years 2020, 2021, and 2022; and 30% for year 2023 and 2024. Required a. Provide the income tax entry for 2021. Date Account Name Dec. 31, 2021 Date Dec. 31, 2022 ◆ Account Name b. Provide the income tax entry for 2022, assuming that the actual taxable income was $6,000 (tax rate, 25%). • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Dr. + → ♦ Cr. Dr. Cr.
Recording NOL Carryforward Toner Corporation reported the following taxable income and loss: 2020 taxable income, $10,000 and 2021 taxable loss, $40,000. At the end of 2021, Toner made the following estimates: 2022 taxable income, $4,000, 2023 taxable income, $11,000, and 2024 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. The tax rates are 25% for years 2020, 2021, and 2022; and 30% for year 2023 and 2024. Required a. Provide the income tax entry for 2021. Date Account Name Dec. 31, 2021 Date Dec. 31, 2022 ◆ Account Name b. Provide the income tax entry for 2022, assuming that the actual taxable income was $6,000 (tax rate, 25%). • Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Dr. + → ♦ Cr. Dr. Cr.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please Do not Give image format and Solve all parts
Transcribed Image Text:c. Provide the income tax entry for 2023, assuming that 2022 results were as described in (b), and that the actual 2023 taxable income was $13,000.
• Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.
Date
Dec. 31, 2023
Account Name
.
◆
◆
d. Provide the entry for 2024, assuming results for 2022 and 2023 as described above and assuming that the actual 2024 taxable income was $45,000.
Account Name
Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.
Date
Dec. 31, 2024
Dr.
♦
→
Cr.
Dr.
Cr.
Transcribed Image Text:Recording NOL Carryforward
Toner Corporation reported the following taxable income and loss: 2020 taxable income, $10,000 and 2021 taxable loss, $40,000. At the end of 2021, Toner made the following estimates: 2022
taxable income, $4,000, 2023 taxable income, $11,000, and 2024 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of tax loss carryforward benefit is more
likely than not to be realized. There are no other temporary differences. The tax rates are 25% for years 2020, 2021, and 2022; and 30% for year 2023 and 2024.
Required
a. Provide the income tax entry for 2021.
Date
Account Name
Dec. 31, 2021
Date
Dec. 31, 2022
◆
♦
Account Name
b. Provide the income tax entry for 2022, assuming that the actual taxable income was $6,000 (tax rate, 25%).
• Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.
Dr.
+
♦
♦
Cr.
Dr.
Cr.
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