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Question 6 The Mishka Corporation reported the following income for both accounting and tax purposes: Pretax Enacted Year Income Tax Rates 2016 $ 120,000
Question 6 The Mishka Corporation reported the following income for both accounting and tax purposes: Pretax Enacted Year Income Tax Rates 2016 $ 120,000 25% 2017 80,000 28% 2018 100,000 30% 2019 (360,000) 30% Mishka Corporation uses the carryback provision for net operating losses when possible. The enacted tax rate for 2020 and future years is 32%. Mishka believes that sufficient verifiable positive evidence exists so that a valuation allowance is not necessary at the end of 2019. Required: Prepare the entries for income tax expense and related assets and liabilities for the Mishka Corporation for the years 2016 through 2019.
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