Rodrigo Reality, LTD reported the following information regarding income or loss reported from 2017 through 2022: The

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Rodrigo Reality, LTD reported the following information regarding income or loss reported from 2017 through 2022:


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The tax rate in 2017 was 35%. However, the tax rate changed to 21%, effective in 2018. This tax rate change was known in 2017.



Required


a. Prepare the journal entry required to record the tax provision for 2018 assuming that Rodrigo is filing its tax returns in a jurisdiction that permits the Net Operating Loss Carryback and Carryforward.


b. Prepare the journal entry required to record the tax provision for 2018 assuming that Rodrigo is filing a U.S. corporate income tax return.


c. Prepare the journal entries necessary to record the tax provisions for 2019 through 2022 assuming that Rodrigo is filing a U.S. corporate income tax return.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 9780136946694

3rd Edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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