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Griswold Company has pretax financial income and tax rates over several years as shown below: Year Pretax Financial Income (Loss) 2020||$640,000 2021 ||(480,000) 2022||200,000 2023||400,000
Griswold Company has pretax financial income and tax rates over several years as shown below: Year Pretax Financial Income (Loss) 2020||$640,000 2021 ||(480,000) 2022||200,000 2023||400,000 The enacted tax rates as of 2020 are 20% through 2021 and 25% for 2022 and beyond. Assume that Griswold determines that it is more likely than not that it can use only $300,000 of its 2021 net operating loss at the time when it is incurred (Griswold reverses this determination in 2023). There are no other temporary or permanent differences between pretax financial income and taxable income. Below, enter the journal entry (or entries) for income taxes that Griswold would need to book for each year (2020, 2021, 2022, and 2023). Separate each journal entry (or entries) by the year. E.g. your journal entries for the first two years would be something like this: 2020 Dr. ABC 20,000, Cr. DEF 20,000 Dr. GHI 30,000, Dr. JKL 15,000, Dr. MNO 15,000 2021 etc
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