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Question (1) Baratheon company had no temporary differnces before the year of 2018, at the end of 2018 the company had only one temporary differnces
Question (1) Baratheon company had no temporary differnces before the year of 2018, at the end of 2018 the company had only one temporary differnces which is tracked in 4 years as follows: 2018 2019 2020 2021 70,000 20,000 (40,000) (50,000) 20% 20% 30% 45% assume that the tax rate for 2020 was enacted during 2020 and the tax rate for 2021 was enacted during 2021, and the tax rate for 2018 and 2019 were enacted in 2015. at the end of 2018, the company did not expect to achieve profit in future years, but at the end of 2019 the company circumstances have changed and the company did expect future profit. Required: if Taxable income for all years were 200,000, record all the required journal entries for 2018, 2019, 2020
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