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Bridgeport Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible): Accounting Income (Loss) $
Bridgeport Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible): Accounting Income (Loss) $ 133,000 Year Tax Rate 2017 25 % 25 % 2018 107,000 (310,000) 2019 30 % 2020 46,000 30 % The tax rates listed were all enacted by the beginning of 2017. ( (a) Your answer is partially correct. 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 for the amounts.) Debit Credit Date Account Titles and Explanation 2017 34000 Income Tax Payable 32000 2018 Investment Income or Loss 28000 Income Tax Payable 27000 DANAMAN DOUDO!!! 2019 Current Tax Expense 61000 Income Tax Payable 60000 2020 Current Tax Expense - Discontinued Operations 13600 Income Tax Payable 13500
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