Culver Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:

		Accounting
		Income
Year		(Loss)		Tax Rate
2018		$122,000			25	%
2019		100,000			25	%
2020		(295,000	)		30	%
2021		216,000			30	%

The tax rates listed were all enacted by the beginning of 2018. Culver reports under the ASPE future/deferred income taxes method.

Prepare the journal entries for each of the years 2018 to 2021 to record income tax. Assume the tax loss is first carried back, and that at the end of 2020, 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2018	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2019	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2020	enter an account title to record benefit from loss carryback	enter a debit amount	enter a credit amount
	enter an account title to record benefit from loss carryback	enter a debit amount	enter a credit amount
	(To record benefit from loss carryback)
	enter an account title to record deferred benefit from loss carryforward	enter a debit amount	enter a credit amount
	enter an account title to record deferred benefit from loss carryforward	enter a debit amount	enter a credit amount
	(To record deferred benefit from loss carryforward)
2021	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	(To record current tax expense)
	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	(To record deferred tax expense)

Assuming the tax loss is first carried back and that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future, prepare the income tax section of the 2020 and 2021 income statements, beginning with the line "Income (loss) before income tax." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Culver Inc. (Partial) Income Statement choose the accounting period For the Month Ended December 31, 2020For the Year Ended December 31, 2020December 31, 2020
				$enter a dollar amount
		$enter a dollar amount
		enter a dollar amount
				enter a subtotal of the two previous amounts
				$enter a total net income or loss amount

Culver Inc. (Partial) Income Statement choose the accounting period December 31, 2021For the Month Ended December 31, 2021For the Year Ended December 31, 2021
select an income statement item Income / (Loss) Before Income TaxNet Income / (Loss)Deferred Tax AssetCurrent Benefit due to Loss CarrybackDeferred Tax LiabilityFuture Benefit due to Loss Carryforward				$enter a dollar amount
enter an income statement item		$enter a dollar amount
enter an income statement item		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement Net Income / (Loss)Deferred Tax AssetIncome / (Loss) Before Income TaxFuture Benefit due to Loss CarryforwardDeferred Tax LiabilityCurrent Benefit due to Loss Carryback				$enter a total net income or loss amount

Prepare the journal entries for 2020 and 2021. Assume that it is more likely than not that one quarter of the carryforward benefits will not be realized. This company does not use a valuation allowance. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2020		enter a debit amount	enter a credit amount
		enter a debit amount	enter a credit amount
	(To record benefit from loss carryback.)
	enter an account title to record future benefit from loss carryforward	enter a debit amount	enter a credit amount
	enter an account title to record future benefit from loss carryforward	enter a debit amount	enter a credit amount
	(To record future benefit from loss carryforward.)
2021	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	(To record current tax expense.)
	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	(To record deferred tax expense.)

Assume that it is more likely than not that one quarter of the carryforward benefits will not be realized. This company does not use a valuation allowance. Prepare the income tax section of the 2020 and 2021 income statements, beginning with the line "Income (loss) before income tax." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Culver Inc. (Partial) Income Statement choose the accounting period For the Year Ended December 31, 2020December 31, 2020For the Month Ended December 31, 2020
select an income statement item Deferred Tax LiabilityCurrent Benefit due to Loss CarrybackDeferred Tax AssetIncome / (Loss) Before Income TaxFuture Benefit due to Loss CarryforwardNet Income / (Loss)				$enter a dollar amount
select an income statement item Income / (Loss) Before Income TaxNet Income / (Loss)Deferred Tax LiabilityFuture Benefit due to Loss CarryforwardCurrent Benefit due to Loss CarrybackDeferred Tax Asset		$enter a dollar amount
select an income statement item Deferred Tax LiabilityDeferred Tax AssetCurrent Benefit due to Loss CarrybackFuture Benefit due to Loss CarryforwardIncome / (Loss) Before Income TaxNet Income / (Loss)		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement Future Benefit due to Loss CarryforwardIncome / (Loss) Before Income TaxNet Income / (Loss)Current Benefit due to Loss CarrybackDeferred Tax AssetDeferred Tax Liability				$enter a total net income or loss amount

Culver Inc. (Partial) Income Statement choose the accounting period For the Year Ended December 31, 2021December 31, 2021For the Month Ended December 31, 2021
select an income statement item Deferred Tax LiabilityCurrent Benefit due to Loss CarrybackFuture Benefit due to Loss CarryforwardDeferred Tax AssetNet Income / (Loss)Income / (Loss) Before Income Tax				$enter a dollar amount
enter an income statement item		$enter a dollar amount
enter an income statement item		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement Deferred Tax LiabilityDeferred Tax AssetIncome / (Loss) Before Income TaxFuture Benefit due to Loss CarryforwardCurrent Benefit due to Loss CarrybackNet Income / (Loss)				$enter a total net income or loss amount

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