Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please correct the parts in red, the parts in green are already correct. Pronghorn Inc. reports the following incomes (losses) for both book and tax

image text in transcribed

Please correct the parts in red, the parts in green are already correct.

Pronghorn Inc. reports the following incomes (losses) for both book and tax purposes (assume the carryback provision is used where possible): Accounting Income Year (Loss) Tax Rate 2017 $132,000 25 % 2018 112.000 25 % 2019 (314,000) 30 % 2020 47,000 30 % The tax rates listed were all enacted by the beginning of 2017. (a) Your answer is partially correct. Prepare the journal entries for each of the years 2017 to 2020 to record income taxes, assuming at December 31, 2019, that it was more likely than not that the company would not be able to benefit from the remaining losses available to carry forward. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2017 Current Tax Expense 33000 Income Tax Payable 33000 2018 Current Tax Expense 28000 Income Tax Payable 28000 2019 Income Tax Receivable 94200 Deferred Tax Benefit - Discontinued Operations 94200 2020 Future Tax Asset 14100 Income Tax Receivable 14100

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

Internal Auditing Basics Video Learning Guide

Authors: Charles A. Cianfrani & John E. West, James P. Gildersleeve

1st Edition

1891578251, 978-1891578250

More Books

Students also viewed these Accounting questions

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago