Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am having trouble finding the amounts in the red boxes. Could you please explain how to get the amounts? Thank you. Blue Inc. reported

I am having trouble finding the amounts in the red boxes. Could you please explain how to get the amounts? Thank you.

image text in transcribed

Blue Inc. reported the following pretax income (loss) and related tax rates during the years 2019-2022. 2019 2020 2021 2022 Pretax Income (loss) Tax Rate $97,600 40% (219,600) 40% 244,000 20 % 122,000 20% Pretax financial income (loss) and taxable income (loss) were the same for all years since Blue began business. The tax rates from 2019-2022 were enacted in 2019. (a) - Your answer is partially correct. Prepare the journal entries for the years 2020-2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Blue expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (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.) Debit Credit Date Account Titles and Explanation 2020 Deferred Tax Asset 87840 Income Tax Expense 87840 2021 Income Tax Expense 48800 Income Tax Payable 48800 Deferred Tax Asset 2022 Income Tax Expense 24400 Income Tax Payable 24400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Internal Auditing An Operational Approach

Authors: Victor Zinn Brink

3rd Edition

0471065242, 978-0471065241

More Books

Students also viewed these Accounting questions