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Bridgeport Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Accounting Income Year (Loss) Tax Rate 2018 $131,000
Bridgeport Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Accounting Income Year (Loss) Tax Rate 2018 $131,000 25 % 2019 97,000 25 % 2020 (306,000) 30 % 2021 223,000 30 % The tax rates listed were all enacted by the beginning of 2018. Bridgeport reports under the ASPE future/deferred income taxes method. (a) Prepare the journal entries for each of the years 2018 to 2021 to record income tax. Assume the tax loss is first carried back, and that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future. (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 O for the amounts.) Explanation Debit Credit
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