Question
Bramble Inc. incurred a net operating loss of $ 577,300 in 2020. Combined income for 2017, 2018, and 2019 was $ 457,000. The tax rate
1- what is the journal entry that is necessary at the end of 2020 assuming that Bramble does not use a valuation allowance account.
2- what is the journal entries that are necessary at the end of 2020 assuming that Bramble does use a valuation allowance account.
a-for recognizing benefit of loss carryback
b-for recognizing benefit of loss carryforward
c-for bringing the deferred tax asset account to its realizable value
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Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian Edition
1119497043, 978-1119497042
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