Question
Please help me, Thank you!!!! Bramble Inc. reports the following incomes (losses) for both book and tax purposes: Year Accounting Income/loss Tax rate 2023 196,000
Please help me, Thank you!!!!
Bramble Inc. reports the following incomes (losses) for both book and tax purposes:
Year Accounting Income/loss Tax rate
2023 196,000 30%
2024 89,000 32%
2025 (335,000) 34%
2026 43,000 35%
Bramble Inc. follows IFRS and uses the carryback provision where possible. The tax rates listed were all enacted in 2023
Prepare the journal entries for 2025. Assume also that i) it is probable that the company will generate sufficient taxable income in the future so that the benefit of any remaining loss will be realized; ii) companys future profitability is uncertain and there is not enough evidence concerning whether there will be future taxable income.
No. Account Titles and Explanation Debit Credit i) (To recognize the benefit of the loss carryback) (To recognize the benefit of the loss carryforward) ii)Step by Step Solution
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