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Barbara Jones Corporation has pretax financial income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $51,840 25% 2021 (75,600) 20%
Barbara Jones Corporation has pretax financial income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $51,840 25% 2021 (75,600) 20% 2022 97,200 20% 2023 32,400 20% 2024 113,400 20% 2025 (64,800) 25% 2026 139,600 25% Pretax financial income (loss) and taxable income (loss) were the same for all years since Jones has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) Your answer is partially correct. What entry for income taxes should be recorded for 2021? (List debit entry before credit entry. Credit account titles are automatically indented when 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.) Account Titles and Explanation Deferred Tax Asset Income Tax Expense eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 2 of 4 used Submit Answer (b) Your answer is correct. 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 e.g. -45 or parentheses e.g. (45).) BARBARA JONES CORPORATION Income Statement (Partial) For the Year Ended December 31, 2021 Operating Loss before Income Taxes -75600 Income Tax Benefit Deferred Net Income/(Loss) +0 +A 15120 -60480 (c) -Your answer is partially correct. What entry for income taxes should be recorded in 2022? (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit Income Tax Expense Income Tax Payable Deferred Tax Asset 19440
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