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Bramble Ltd. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2020 117,000 34
Bramble Ltd. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2020 117,000 34 % 2021 114,000 34 % 2022 (288,000) 38 % 2023 307,000 38 % The tax rates listed were all enacted by the beginning of 2020. Prepare the journal entries for 2022 and 2023, assuming that based on the weight of available evidence at 12/31/22, it is probable that one-fourth of the benefits of the loss carryforward will not be realized. (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 for the amounts.) Date Account Titles and Explanation Debit Credit 2022 2023 (To record loss carryforward) 2023
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