Sharon Lee Corporation has pretax financial income (or loss) from 2020 through 2026 as follows. 2020 2021 2022 2023 2024 2025 2026 Income (Loss) $67,200 (98,000) 126,000 42,000 147,000 (84,000) 178,000 (a) Tax Rate 25% 20% 20% 20% 20% 25% 25% Pretax financial income (loss) and taxable income (loss) were the same for all years since Lee 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. Your answer is incorrect. What entry for income taxes should be recorded for 2021? (List debit entry before credit entry. 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 for the amounts)
Sharon Lee Corporation has pretax financial income (or loss) from 2020 through 2026 as follows. 2020 2021 2022 2023 2024 2025 2026 Income (Loss) $67,200 (98,000) 126,000 42,000 147,000 (84,000) 178,000 (a) Tax Rate 25% 20% 20% 20% 20% 25% 25% Pretax financial income (loss) and taxable income (loss) were the same for all years since Lee 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. Your answer is incorrect. What entry for income taxes should be recorded for 2021? (List debit entry before credit entry. 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 for the amounts)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kk.252.
Transcribed Image Text:Sharon Lee Corporation has pretax financial income (or loss) from 2020 through 2026 as follows.
2020
2021
2022
2023
2024
2025
2026
Income (Loss) Tax Rate
$67,200
(98,000)
126,000
42,000
147,000
(84,000)
178,000
(a)
25%
20%
20%
benefi
20%
Deferred Tax Asset
20%
Pretax financial income (loss) and taxable income (loss) were the same for all years since Lee 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.
25%
25%
Your answer is incorrect.
What entry for income taxes should be recorded for 2021? (List debit entry before credit entry. 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.)
Account Titles and Explanation
Debit
98000
Credit
98000
Transcribed Image Text:(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(d)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(e)
The parts of this question must be completed
heart will be available when you complete the part above.
Deferred Tax Asset
(f)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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