Sage Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $52,800 25 % 2016 (77,000 ) 20 % 2017 99,000 20 % 2018 33,000 20 % 2019 115,500 20 % 2020 (66,000 ) 25 % 2021 142,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Sage has
Sage Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $52,800 25 % 2016 (77,000 ) 20 % 2017 99,000 20 % 2018 33,000 20 % 2019 115,500 20 % 2020 (66,000 ) 25 % 2021 142,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Sage has
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.
Sage Corporation has pretax financial income (or loss) from 2015 through 2021 as follows.
Pretax financial income (loss) and taxable income (loss) were the same for all years since Sage 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.
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Income (Loss)
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Tax Rate
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| 2015 | $52,800 | 25 | % | |||
| 2016 | (77,000 |
)
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20 | % | ||
| 2017 | 99,000 | 20 | % | |||
| 2018 | 33,000 | 20 | % | |||
| 2019 | 115,500 | 20 | % | |||
| 2020 | (66,000 |
)
|
25 | % | ||
| 2021 | 142,000 | 25 | % |
Pretax financial income (loss) and taxable income (loss) were the same for all years since Sage 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.
(a)
What entries for income taxes should be recorded for 2016? (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 0 for the amounts.)
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Account Titles and Explanation
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Debit
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Credit
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(b)
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