Tamarisk Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $(84,000) 25 % 2021 (90,000) 20 % 2022 78,000 20 % 2023 57,000 20 % 2024 (132,000) 20 % 2025 95,000 25 % 2026 162,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Tamarisk has been in business. Tax rates were not enacted until the year of change. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) (b) Indicate what the income tax expense portion of the income statement for 2021 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Tamarisk Corporation Income Statement (Partial) $

Tamarisk Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $(84,000) 25 % 2021 (90,000) 20 % 2022 78,000 20 % 2023 57,000 20 % 2024 (132,000) 20 % 2025 95,000 25 % 2026 162,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Tamarisk has been in business. Tax rates were not enacted until the year of change. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) (b) Indicate what the income tax expense portion of the income statement for 2021 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Tamarisk Corporation Income Statement (Partial) $

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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