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Melinda Ltd. had a gross $195,000 loss carryforward at the end of 20X6. This gross loss carryforward increased to $254,000 at the end of 20X7.
Melinda Ltd. had a gross $195,000 loss carryforward at the end of 20X6. This gross loss carryforward increased to $254,000 at the end of 20X7. In 20X8, $69,000 of the LCF was used. The enacted tax rates, enacted in the year to which they pertain, were 28% in 20X6, 30% in 20X7, and 31% in 20X8 Required: 1-a. For each year, show how the LCF would be reflected in a table that documents deferred income tax balances 20X6 20X7 20x8 Defemed income tax balances -b. For each year, show how the LCF would be reflected in a table that documents deferred adjustments. (Negative answer should be indicated with minus sign.) 20x6 20X7 20x8 2. Calculate the components of the change in the deferred tax account in 20X7 Impact of change in tax rate on opening balance Increase in LCF Total
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