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Can someone please help me with this question? Vaughn Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income
Can someone please help me with this question?
Vaughn Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2018 $111,000 20 % 2019 89,000 20% 2020 (281,000) 25 % 2021 122,000 25% The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half 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 O for the amounts.) Debit Credit Date Account Titles and Explanation 2018 2019 2020 (To record income taxes.) (To record allowance.) 2021 (To record income taxes.) (To adjust allowance.) Prepare the income tax section of the 2020 Income statement beginning with the line "Operating loss before Income taxes. Enter parentheses es (45)) the amount Vaughn Inc. Income Statement (Partial) eTextbook and Media List of Accounts Prepare the income tax section of the 2021 Income statement beginning with the line "Income before income taxes. Enter negative amounts using the Vaughn Inc. Income Statement (Partial) e Textbook and MediaStep by Step Solution
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