Exercise 19-24

Beilman Inc. reports the following pretax income (loss) for both book and tax purposes.

Year		Pretax Income (Loss)			Tax Rate
2018		$120,000			20	%
2019		90,000			20	%
2020		(280,000)			25	%
2021		120,000			25	%

The tax rates listed were all enacted by the beginning of 2018.

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Prepare the journal entries for years 20182021 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 0 for the amounts.)

NOTE: the following answers are incorrect: 35,000 / 8750 / 14000 / 30,000

2018 Income Tax Expense 24,000 T Income Tax Payable 24,000 204 2019 Income Tax Expense 18,000 T Income Tax Payable 18,000) 2020 I Income Tax Expense 70,000 70,000 Deferred Tax Asset (To record income taxes.) Income Tax Expense 35,000 - - 35,000 Allowance to Reduce Defer (To record allowance.) 2021 1 Income Tax Expense 30,000 2 30,000 Deferred Tax Asset (To record income taxes.) Tallowance to Reduce Defer) ezen 8750 8750 Income Tax Expense (To adjust allowance.)