Prepare the journal entries for the years 2020-2022 to record income tax expense, income taxes payable (refundable), and thetax effects of the loss carryback and loss carryforward, assuming no valuation allowance is needed. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts.)Date Account Titles and Explanation202020212022DebitCredit Vaughn Company reported the following pretax financial income (loss) for the years 2018-2022.2018 $259,200378,000129,600(615,600 )194,4002019202020212022Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2018and 2019, and 20% for 2020-2022. Assume the carryback provision is used first for net operating losses.

Pretax financial income or loss is the income earned or loss incurred by the taxpayer before making…

Vaughn Company reported the following pretax financial income (loss) for the years 2018-2022. 2018 $259,200 2019 2020 378,000 2022 129,600 2021 (615,600) 194,400 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2018 and 2019, and 20% for 2020-2022. Assume the carryback provision is used first for net operating losses.

Vaughn Company reported the following pretax financial income (loss) for the years 2018-2022. 2018 $259,200 2019 2020 378,000 2022 129,600 2021 (615,600) 194,400 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 34% for 2018 and 2019, and 20% for 2020-2022. Assume the carryback provision is used first for net operating losses.

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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