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the red indicates incorrect - please assist Wildhorse Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss)
the red indicates incorrect - please assist
Wildhorse Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2018 $120,000 20% 2019 93,000 20% 2020 (303,000) 2021 110,000 25% The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable (refundable), and th of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no ent select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation 2018 Income Tax Expense 24,000 Income Tax Payable 24,000 2019 Income Tax Expense 18,600 Income Tax Payable 18,600 Deferred Tax Asset 75750 Income Tax Expense 75750 (To record income taxes.) Benefit Due to Loss Carryforward 22.500 Allowance to Reduce Deferred Tax Asset to Expected Realiz 22,500 (To record allowance.) 2021 Income Tax Expense 27500 Income Tax Payable 27500 (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected Realiz 3375 Benefit Due to Loss Carryforward 3375 (To adjust allowance.) Prepare the income tax section of the 2020 income statement beginning with the line "Operating loss before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Wildhorse Inc. Income Statement (Partial) For the Year Ended December 31, 2020 4 Operating Loss before Income Taxes (303,000) Income Tax Expense - Current Benefit Due to Loss Carryforward - Net Income /(Loss) Prepare the income tax section of the 2021 income statement beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Wildhorse Inc. Income Statement (Partial) For the Year Ended December 31, 2021 Income before Income Taxes 110,000 Income Tax Expense Current Net Income /(Loss)Step by Step Solution
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