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***Please show all the steps for reaching the answer and use the account name below*** Blue AG reports the following pretax income (loss) for both
***Please show all the steps for reaching the answer and use the account name below***
Blue AG reports the following pretax income (loss) for both book and tax purposes. Year Pretax Income (Loss) Tax Rate 2020 112,000 40 % 2021 93,000 40 % 2022 (302,000) 45 % 2023 127,000 45 % The tax rates listed were all enacted by the beginning of 2020. Prepare the journal entries for years 2020-2023 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 probable 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 O for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Income Tax Expense Income Taxes Payable 2021 Income Tax Expense Income Taxes Payable 2022 Deferred Tax Asset Income Tax Expense 2023 Income Tax Expense Deferred Tax AssetStep by Step Solution
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