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Bramble Inc. reported the following pretax income (loss) and related tax rates during the years 2019-2022. 2019 2020 2021 2022 Pretax Income (loss) Tax Rate
Bramble Inc. reported the following pretax income (loss) and related tax rates during the years 2019-2022. 2019 2020 2021 2022 Pretax Income (loss) Tax Rate $84,800 40 % (190,800) 40 % 212,000 20% 106,000 20 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Bramble began business. The tax rates from 2019-2022 were enacted in 2019 Your answer is partially correct. Prepare the journal entries for the years 2020-2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Bramble expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Income Tax Refund Receivable Benefit Due to Loss Carryback 2021 Income Tax Expense 42,400 Income Tax Payable 21,2000 Deferred Tax Asset 21,200 2022 Income Tax Expense 21,200 Income Tax Payable 21,200 Prepare the portion of the income statement, starting with "Operating loss before income taxes," for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Bramble Inc. Income Statement (Partial) For the Year Ended December 31, 2020 Operating Loss before Income Taxes (190,800) $ Income Tax Benefit Income Tax Expense - Deferred 33,920 Net Income /(Loss) 156880 $ e Textbook and Media List of Accounts Prepare the portion of the income statement, starting with Income before income taxes," for 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Bramble Inc. Income Statement (Partial) For the Year Ended December 31, 2021 Income before Incon 212,000.00 $ Income Tax Expense Current 21,200 $ Deferred 21,200 42,400 Net Income /(Loss) 169,600 $
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