Show Attempt History Current Attempt in Progress Whispering Winds Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Accounting Income Year (Loss) Tax Rate 2018 $122,000 25 % 2019 96,000 25 % 2020 (292,000) 30 % 2021 224,000 30 % The tax rates listed were all enacted by the beginning of 2018. Whispering Winds reports under the ASPE future/deferred income taxes method (a) Search o IT c o 23C Question 6 of 8 2.33/12 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 2018 Current Tax Expense 30500 Income Tax Payable 30500 2019 Current Tax Expense 24000 Income Tax Payable 24000 2020 Current Tax Benefit 146000 Income Tax Payable 146000 (To record benefit from loss carryback) Deferred Tax Asset 22200 me here to search * 2 23C 2.337 12 Income Tax Payable 146000 (To record benefit from loss carryback) Deferred Tax Asset 22200 Current Tax Payable 22200 (To record deferred benefit from loss carryforward) 2021 Current Tax Expense 45000 Income Tax Payable 45000 (To record current tax expense) Deferred Tax Expense 22200 Deferred Tax Asset 22200 (To record deferred tax expense) 6 - ? 23C ere to search View Policies Show Attempt History Current Attempt in Progress At the end of 2019, Blue Spruce Corporation reported a deferred tax liability of $44,200. At the end of 2020, the company had $248,000 of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and equipment has been lower than the CCA claimed on Blue Spruce's income tax returns. The resulting future taxable amounts are as follows: 2021 $80,000 2022 63.000 2023 58.000 2024 47,000 $248,000 The tax rates enacted as of the beginning of 2019 are as follows: 31% for 2019 and 2020; 30% for 2021 and 2022; and 25% for 2023 and later. Taxable income is expected in all future years. Your answer is partially correct. Early in 2021, after the 2020 financial statements were released, new tax rates were enacted as follows: 29% for 2021 and 27% for 2022 and later. Prepare the journal entry for Blue Spruce to recognize the change in tax rates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2021 Deferred Tax Expense 210 210 Deferred Tax Liability Attempts: 1 of 3 used Submit Answer Save for Later Using multiple attempts will impact your score. fan oftar attomnt 1 2.57 / 12 View Policies Show Attempt History Current Attempt in Progress Riverbed Inc. reports accounting income of $104,000 for 2020, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements. 1. Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $15,200. 2. Rent revenue reported on the tax return is $22,800 higher than rent revenue reported on the income statement. 3. Non-deductible fines appear as an expense of $12,800 on the income statement. 4. Riverbed's tax rate is 30% for all years and the company expects to report taxable income in all future years. Riverbed reports under IFRS. (a) (b) Your answer is partially correct. Calculate any deferred tax balances at December 31, 2020. Deferred tax asset $ 4560 e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer Using multiple attempts has impacted your score. 5% score reduction after attempt 1 (c) The parts of this question must be completed in order. This part will be available when you complete the part above