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please help me fix... the numbers in red are incorrect Martinez Corporation reported the following income for each of the years indicated. For each year,
please help me fix... the numbers in red are incorrect
Martinez Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Martinez's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Income/ (Loss) Tax Rate Year 2020 25,000 30% 2021 45,000 33% 2022 13,000 35% 2023 (94,000) 38% 2024 (46,000) 32% 2025 73,000 32% Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Martinez follows the future income taxes method under ASPE. (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 Ofor the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 2022 Current Tax Expense 4550 Income Tax Payable 4550 2023 Income Tax Receivable 19400 Current Tax Benefit 19400 (To record benefit from loss carryback.) Future Tax Asset 11520 Future Tax Benefit 11520 (To recognize benefit of loss carryforward.) 2024 Future Tax Asset 14720 Future Tax Benefit 14720 2025 7 Future Tax Expense 18688 Future Tax Asset 18688 (To record future tax expense.) Current Tax Expense 4672 Income Tax Payable 4672 (To record current tax expense.)Step by Step Solution
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