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Buckaroo, Ltd. reported the following financial income for the years 2020 thru 2022 2020 2021 2022 250,000 -170,000 140,000 Pretax financial income (loss) and taxable
Buckaroo, Ltd. reported the following financial income for the years 2020 thru 2022 2020 2021 2022 250,000 -170,000 140,000 Pretax financial income (loss) and taxable income (loss) were the same for all years. The applicable tax rates are 25% for 2020, 27% for 2021 and 28% fro 2022. Instructions: (Round you calculations to the nearest whole dollar) a) Prepare the journal entry at year end 2020 to record income tax expense b) Prepare the journal entries for year end 2021 for the tax effexts of the loss carryforward assumingthat based on the weight of evidence, it is more likely than not that 15% of the benefits of the loss carryforward will not be realized c) Prepare the journal entry(s) for the year end 2022 to record income tax transaction(s)
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