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. | | | |
| | | Your answer is partially correct. Try again. | | | 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.) | | |
2018 Tincome Tax Expense 24,000 T Income Tax Payable 2019 Income Tax Expense 18,000 Income Tax Payable 18,000 2020 I Income Tax Expense 70,000 70,000 Deferred Tax Asset (To record income taxes.) Income Tax Expense 8750 "Allowance to Reduce Defer (To record allowance.) 8 8750 750 302, 2021 Income Tax Expense 30,000 30,000 Deferred Tax Asset (To record income taxes.) TAllowance to Reduce Defer Income Tax Expense 8750