At the end of 2016, Keil Company reports a pretax operating loss of $80,000 for both financial reporting and income tax purposes. Prior to 2016, Keil had been successful and had reported and paid taxes on the following pretax financial income and taxable income: 2013, $37,200; 2014, $51,900; and 2015, $53,800. Keil had been subject to tax rates of 20% in 2013, 25% in 2014, and 30% in 2015. Required: 1. Prepare Keil's income tax journal entry at the end of 2016. 2. Prepare the lower portion of Keil's 2016 income statement.

At the end of 2016, Keil Company reports a pretax operating loss of $80,000 for both financial reporting and income tax purposes. Prior to 2016, Keil had been successful and had reported and paid taxes on the following pretax financial income and taxable income: 2013, $37,200; 2014, $51,900; and 2015, $53,800. Keil had been subject to tax rates of 20% in 2013, 25% in 2014, and 30% in 2015. Required: 1. Prepare Keil's income tax journal entry at the end of 2016. 2. Prepare the lower portion of Keil's 2016 income statement.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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