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(To record refund) Benefit Due to Loss Carryback 1200 Benefit Due to Loss Carryforward 120 (To record allowance) 2022 Income Tax Expense 38000 Deferred Tax
(To record refund) Benefit Due to Loss Carryback 1200 Benefit Due to Loss Carryforward 120 (To record allowance) 2022 Income Tax Expense 38000 Deferred Tax Asset ANA 6000 Income Tax Expense 32000 (To record income taxes) Allowance to Reduce Deferred Tax Asset to Expected Realiz 1200 Benefit Due to Loss Carryforward 1200 (To adjust allowance) (a) Your answer is partially correct. Prepare the journal entries for the years 2020-2022 to record income tax expense, income taxes payable, and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-fifth of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Income Tax Expense 24000 Income Tax Payable 24000 2021 Income Tax Refund Receivable 24000 Deferred Tax Asset 6000 Meyer reported the following pretax financial income (loss) for the years 2020-2022. 2020 $120,000 2021 (150,000) 2022 190,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 20% for 2020- 2022
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