Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show steps/calculations to correct answer. Thank you! Skysong Inc. reported the following pretax income (loss) and related tax rates during the years 2019-2022. 2019

image text in transcribedPlease show steps/calculations to correct answer. Thank you!

Skysong Inc. reported the following pretax income (loss) and related tax rates during the years 2019-2022. 2019 2020 Pretax Income (loss) Tax Rate $72,000 40% (162,000) 40% 180,000 90,000 2021 2022 Pretax financial income (loss) and taxable income (loss) were the same for all years since Skysong began business. The tax rates from 2019-2022 were enacted in 2019. (a) - Your answer is partially correct. Prepare the journal entries for the years 2020-2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Skysong expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. (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 2020 Deferred Tax Asset 36,000 Benefit Due to Loss Carryforward 36,000 2021 Income Tax Expense 54,000 Deferred Tax Liability 36,000 Income Tax Payable 18,000 2022 Income Tax Expense 18,000 Income Tax Payable 18,000

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

Students also viewed these Accounting questions