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Please help me with the parts that are wrong please! Vaughn Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax
Please help me with the parts that are wrong please!
Vaughn Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2018 $111.000 20% 2019 89.000 20% 2020 (281,000) 25 % 2021 122.000 25% The tax rates listed were all enacted by the beginning of 2018. - Your answer is partially correct. Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation 2018 Income Tax Expense 22200 22200 17800 Income Tax Payable 2019 Income Tax Expense Income Tax Payable 2020 Deferred Tax Asset Income Tax Expense (To record income taxes.) Income Tax Expense 40000 40000 20000 20000 - 30500 Allowance to Reduce Deferred Tax Asset to Ex (To record allowance.) 2021 Income Tax Expense Deferred Tax Asset (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Ex | Income Tax Expense (To adjust allowance.) 30500 20000 Prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes." (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Vaughn Inc. Income Statement (Partial) For the Year Ended December 31, 2020 $ 281000 Operating Loss before Income Taxes ) Income Tax Benefit Benefit Due to Loss Carryforward ] 35,125 i 245875 Net Income /(Loss) 055) e Textbook and Media List of Accounts - Your answer is partially correct. Prepare the income tax section of the 2021 income statement beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.s. (450 Vaughn Inc. Income Statement (Partial) For the Year Ended December 31, 2021 Income before Income Taxes $ 122000 Deferred Income Tax Benefit Due to Loss Carryforward 35125 Net Income /(Loss) 86875Step by Step Solution
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