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Coronado Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year 2018 2019 2020 2021 Pretax Income (Loss) $129,000
Coronado Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year 2018 2019 2020 2021 Pretax Income (Loss) $129,000 116,000 (224,000) 319,000 Tax Rate 17 % 17% 19% 19 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for 2020 and 2021, assuming that based on the weight of available evidence, it is more likely than not that one-fourth 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 for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Income Tax Refund Receivable Deferred Tax Asset (To record refund.) (To record allowance.) 2021 (To record income taxes.) (To adjust allowance.) Assuming that based on the weight of available evidence, it is more likely than not that one-fourth of the benefits of the loss carryforward will not be realized, prepare the income tax section of the 2020 income statement, beginning with the line "Operating loss before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.8. (45).) Coronado Inc. Income Statement (Partial) For the Year Ended December 31, 2020 . $ $
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