Accounting Problem 9

Instructions

Com plete Question 9 Part 1.png, and Question 9 Part 2.png. Use the List of Accounts Below.

List of Accounts

• Allowance to Reduce Deferred Tax Asset to Expected Realizable Value
• Allowance to Reduce Future Tax Asset to Expected Realizable Value
• Current Tax Benefit
• Current Tax Benefit - Discontinued Operations
• Current Tax Expense
• Current Tax Expense - Discontinued Operations
• Current Tax Payable
• Deferred Tax Asset
• Deferred Tax Benefit
• Deferred Tax Benefit - Discontinued Operations
• Deferred Tax Benefit-OCI
• Deferred Tax Expense
• Deferred Tax Expense - Discontinued Operations
• Deferred Tax Expense-OCI
• Deferred Tax Liability
• FV-NI Investments
• FV-OCI Investments
• Future Tax Asset
• Future Tax Benefit
• Future Tax Expense
• Future Tax Liability
• Income Tax Payable
• Income Tax Receivable
• Investment Income or Loss
• Land
• No Entry
• Retained Earnings
• Unrealized Gain or Loss
• Unrealized Gain or Loss-OCI

Question 9 Part 1.png

Bridgeport Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible): Accounting Income Year (Loss) Tax Rate 2017 $139.000 25 % 2018 107,000 25 % 2019 (316,000 ) 30 % 2020 49,000 30 9% The tax rates listed were all enacted by the beginning of 2017. Prepare the journal entries for each of the years 2017 to 2020 to record income taxes, assuming at December 31, 2019, that it was more likely than not that the company would not be able to benefit from the remaining losses available to carry forward. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2017 2018 2019 2020