Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. Sunland Inc. reports the following pretax income (oss) for both book and taxpurposes.YearTax Rate20182019PretaxIncome (Loss)$109,000(2 entries)-2019(2 entries)-2020(4 entries)-2021(5 entries)81,000(93,000)130,00020202021The tax rates listed were all enacted by the beginning of 2018.Prepare the journal entries for years 2018-2021 to record income tax expense(benefit) and income taxes payable, and the tax effects of the loss carryforward,assuming that based on the weight of available evidence, it is more likely thannot that one-half of the benefits of the loss carryforward will not be realized.(Credit account tities are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for the account titlesand enter 0 for the amounts)Date Account Titles and Explanation-201820 %20%Sunland Inc.Income Statement (Partial)25%25 %Prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxesEnter negative amounts using either a negative sign preceding the number 3.-45 or parentheses es (45))Sunland Inc.Income Statement (Partial)Prepare the income tax section of the 2021 income statement beginning with the line "Income before income taxes" (Endernegative amounts using either a negative sign preceding the number -45 or parentheses eg (45))Stitch It!

Together with the balance sheet and cash flow statement, the income statement is one of the main…

Sunland Inc. reports the following pretax income foss) for both book and tax purposes. Year Tax Rate Pretax Income (Loss) $109,000 2018 20 % 2019 20% 2020 25% 2021 25 % The tax rates listed were all enacted by the beginning of 2018. Prepare the joumal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (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) 81,000 (93,000) 130,000

Sunland Inc. reports the following pretax income foss) for both book and tax purposes. Year Tax Rate Pretax Income (Loss) $109,000 2018 20 % 2019 20% 2020 25% 2021 25 % The tax rates listed were all enacted by the beginning of 2018. Prepare the joumal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (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) 81,000 (93,000) 130,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Sunland Inc. reports the following pretax income (oss) for both book and tax
purposes.
Year
Tax Rate
2018
2019
Pretax
Income (Loss)
$109,000
(2 entries)
-2019
(2 entries)
-2020
(4 entries)
-2021
(5 entries)
81,000
(93,000)
130,000
2020
2021
The tax rates listed were all enacted by the beginning of 2018.
Prepare the journal entries for years 2018-2021 to record income tax expense
(benefit) and income taxes payable, and the tax effects of the loss carryforward,
assuming that based on the weight of available evidence, it is more likely than
not that one-half of the benefits of the loss carryforward will not be realized.
(Credit account tities 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)
Date Account Titles and Explanation
-2018
20 %
20%
Sunland Inc.
Income Statement (Partial)
25%
25 %
Prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes
Enter negative amounts using either a negative sign preceding the number 3.-45 or parentheses es (45))
Sunland Inc.
Income Statement (Partial)
Prepare the income tax section of the 2021 income statement beginning with the line "Income before income taxes" (Ender
negative amounts using either a negative sign preceding the number -45 or parentheses eg (45))
Stitch It!

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