Question 22 (10 points) In 2019, the first year of its operations, Jersey Inc. reported an income of $ 50,000 for tax purpose. However, in 2020, Jersey reported a loss of $200,000 for tax purposes. In 2021, Jersey earned $250,000 income for tax purpose. The enacted tax rate is 30% for 2019 and 2020, 20% for 2021 and thereafter. Required: 1. Prepare the journal entries for each of the years 2019 to 2021 to record income tax. Assume the tax loss is first carried back and that, at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future. 2. Prepare the journal entries for 2020 and 2021. Assume that one quarter of the carryforward benefits was judged more likely than not will not be realized at the end of 2020. Jersey chooses to use the valuation allowance method for loss carryforwards. Question 22 (10 points) In 2019, the first year of its operations, Jersey Inc. reported an income of $ 50,000 for tax purpose. However, in 2020, Jersey reported a loss of $200,000 for tax purposes. In 2021, Jersey earned $250,000 income for tax purpose. The enacted tax rate is 30% for 2019 and 2020, 20% for 2021 and thereafter. Required: 1. Prepare the journal entries for each of the years 2019 to 2021 to record income tax. Assume the tax loss is first carried back and that, at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future. 2. Prepare the journal entries for 2020 and 2021. Assume that one quarter of the carryforward benefits was judged more likely than not will not be realized at the end of 2020. Jersey chooses to use the valuation allowance method for loss carryforwards