Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Coronado Inc. reported the following pretax income (loss) and related tax rates during the years 2019-2022 2019 2020 2021 2022 Pretax Income (loss) Tax Rate

image text in transcribed
image text in transcribed
Coronado Inc. reported the following pretax income (loss) and related tax rates during the years 2019-2022 2019 2020 2021 2022 Pretax Income (loss) Tax Rate $43.600 40% (192,000) 40 % 242,000 20 % 72.900 20% Pretax financial income foss) and taxable income (loss) were the same for all years since Coronado began business. The tax rates from 2019-2022 were enacted in 2019. Your answer is partially correct. Prepare the journal entries for the years 2020-2022 to record income taxes payable refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Coronado expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (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 for the amounts) Date Account Tities and Explanation Debit Credit 2020 Income Tax Refund Receivable 76800 Deferred Tax Asset 76800 2021 Income Tax Expense 38400 Income Tax Payable 10000 Deferred Tax Asset 48400 2022 Income Tax Expense 14500 Income Tax Payable 14560 Prepare the portion of the income statement, starting with "Operating loss before income taxes" for 2020. (Enter negative amounts using either a negative sin preceding the parentheses s.1451) Coronado Inc. Income Statement (Partial) For the Year Ended December 31, 2020 Operating Loss before Income Taxes -192000 Total Expenses Income Tax Expense Deferred 7680 Net Income/Loss) 184320 eTextbook and Media List of Accounts Your answer is partially correct. Prepare the portion of the income statement, starting with "Income before income taxes," for 2021. (Enter negative amounts using either a negative si preceding the numberes 1450 Coronado Inc. Income Statement (Partial) For the Year Ended December 31, 2021 Income before Income Taxes 242000 Income Tax Expense Current 10000 Deferred 48400 58400 Net income 18.3600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions