can anyon pls help?? thank you!
Nash Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Nash Inc. follows IFRS. Tax Rate 18% Year 2020 2021 2022 2023 Accounting Income (Loss) $142,000 94,000 (316,000) 192,000 18% 16% 16% The tax rates were all enacted by the beginning of 2020. (a) Your answer is partially correct. Prepare the journal entries for the years 2020 to 2023 to record income taxes, assuming the tax loss is first carried back and that at the end of each year, 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 for the amounts. Record journal entries in the order presented in the problem.) (a) Your answer is partially correct. Prepare the journal entries for the years 2020 to 2023 to record income taxes, assuming the tax loss is first carried back and that at the end of each year, 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 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 2020 Current Tax Expense 25,560 Income Tax Payable 25,560 2021 Current Tax Expense 16,920 Income Tax Payable 16,920 2022 Income Tax Receivable 42.480 Current Tax Benefit (To record benefit from loss carryback.) Deferred Tax Asset 12,800 Deferred Tax Benefit 12,800 (To record deferred tax benefit from loss carryforward.) Current Tax Expense 30,720 Income Tax Payable 30,720 (To record current tax expense.) Deferred Tax Expense 12,800 42.480 2023 12,800 Deferred Tax Asset (To record deferred tax expense.) (b) Your answer is partially correct. 42.480 42.480 Prepare the journal entries for 2022 and 2023 assuming that, based on the weight of available evidence, it is more likely than not that only 80% of the carryforward benefits will be realized (20% not expected to be realized). A valuation allowance account is not used by the company. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 2022 Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) Deferred Tax Asset 60,000 Deferred Tax Benefit 60,000 (To record deferred tax benefit from loss carryforward.) Current Tax Expense Income Tax Payable 17.920 (To record current tax expense.) Deferred Tax Expense Deferred Tax Asset (To record deferred tax expense.) 2023 17.920 60,000 60,000 List of Accounts
