Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need solution for 2018, 2019, 2020, and 2021 The pretax financial income (or loss) figures for Skysong Company are as follows. 2017 75,000 2018

I need solution for 2018, 2019, 2020, and 2021

image text in transcribed
The pretax financial income (or loss) figures for Skysong Company are as follows. 2017 75,000 2018 (39,000) 2019 (34,000 ) 119,000 2021 105,000 Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 25% tax rate for 2017 and a 20% tax rate for the remaining years. Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carryforwards. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.) (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 O or the amounts.) Account Titles and Explanation Debit Credit 2017 Income Tax Expense 18750 Income Tax Payable 18750 2018 7800 7800 2019 Deferred Tax Asset Income Tax Expense 2020 Income Tax Expense 23,800 Deferred Tax Asset 23,800 2021 Income Tax Expense 21000 Income Tax Payable 21,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial Accounting A User Perspective

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

6th Canadian Edition

470676604, 978-0470676608

Students also viewed these Accounting questions