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1. In its first three years of operations, Vaden Corp. experienced the following income/(losses): Year Income/(Loss) Tax Rate 2019 30,000 0.30 2020 80,000 0.25
1. In its first three years of operations, Vaden Corp. experienced the following income/(losses): Year Income/(Loss) Tax Rate 2019 30,000 0.30 2020 80,000 0.25 2021 (170,000) 0.25 Required: a. Prepare the journal entry that Vaden needs to make in 2021, assuming that it is more likely than not that any loss carryforward will be realized? b. Prepare the income tax section of the income statement for 2021, beginning with Pretax Net Loss. c. What additional entry would Vaden need to make in 2021 if it is more likely than not that any loss carryforward will NOT be realized?
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