Riley inc reports the following pre-tax incomes (losses) for both financial reporting and purposes and tax purposes
The tax rates listed were enacted by the beginning of 2018 . Riley reports under the ASPE future/deferred income taxes method Instructions a Prepare the journal entries for each of the years 2018 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 b Using the assumptions in part a), prepare the income tax section of the 2020 and 2021 income statement, beginning with the line "Income (Loss) before income tax c Prepare the journal entries for 2020 and 2021. Assume that it is more likely than not that one quarter of the loss carryforward benefits will not be realized This company does not use a valuation allowance d Using the assumptions in part c), prepare the income statement section of the 2020 and 2021 income statements, beginning with the line "Income (Loss) before income tax e Using the assumptions in part c), discuss what information should be disclosed in the notes to the financial statements Excel file Question 2 Riley Inc. reports the following pre-tax incomess (losses) for both financial reporting and purpo: The tax rates listed were enacted by the beginning of 2018 . Riley reports under the ASPE future/deferred income taxes method a Prepare the journal entries for each of the years 2018 to 2021 to record Instructions 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 b Using the assumptions in part a), prepare the income tax section of the 2020 and 2021 income statement, beginning with the line "Income (Loss) before income tax Prepare the journal entries for 2020 and 2021. Assume that it is more likely than not that one quarter of the loss carryforward benefits will not be realized This company does not use a valuation allowance Using the assumptions in part c), prepare the income statement section of the 2020 and 2021 income statements, beginning with the line "Income (Loss) before income tax Using the assumptions in part c), discuss what information should be disclosed in the notes to the financial statements