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Oak Inc. reports the following pre-tax incomes (losses) for both book and tax purposes. (Assume that the carxxback provision is used where possible.) Year 2019
Oak Inc. reports the following pre-tax incomes (losses) for both book and tax purposes. (Assume that the carxxback provision is used where possible.) Year 2019 2020 2021 2022 Accounting Income (loss) $50,000 140,000 (250,000) 70,000 Tax rate 30% 35% 35% 35% Part A. (8 marks). Prepare the journal entries for each of the years 2021 and 2022 to record income taxes, assuming that at December 31, 2021 that it was more likely than not that the campany would be able to benefit from the remaining losses available to carry forward. 2021 2022 Debit Credit 7 Part B (1 mark). What is the amount that Oak corporation report as net income (loss) for financial reporting purposes in 2021
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