Toner Corporation reported the following taxable income and loss 2020 taxable income, $10,000 and 2021 taxable loss, $40,000 At the end of 2021, Toner made the following estimates 2022 taxable income, $4,000, 2023 taxable income, $11,000, and 2024 taxable income, $50,000 On the basis of these estimates, Toner believes the full amount of tax loss carryforward benefit is more likely than not to be realized There are no other temporary differences The tax rates are 25 for years 2020, 2021, and 2022 and 30 for year 2023 and 2024 Required a Provide the income tax entry for 2021 Date Account Name Dr Cr Dec 31, 2021 AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer b Provide the income tax entry for 2022, assuming that the actual taxable income was $6,000 (tax rate, 25 ) Note List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order Date Account Name Dr Cr Dec 31, 2022 AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer c Provide the income tax entry for 2023, assuming that 2022 results were as described in ( b ), and that the actual 2023 taxable income was $13,000 Note List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order Date Account Name Dr Cr Dec 31, 2023 AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer d Provide the entry for 2024, assuming results for 2022 and 2023 as described above and assuming that the actual 2024 taxable income was $45,000 Note List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order Date Account Name Dr Cr Dec 31, 2024 AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN A Answer Answer

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Toner Corporation reported the following taxable income and loss: 2020 taxable income, $10,000 and 2021 taxable loss, $40,000. At the end of 2021, Toner made

Toner Corporation reported the following taxable income and loss: 2020 taxable income, $10,000 and 2021 taxable loss, $40,000. At the end of 2021, Toner made the following estimates: 2022 taxable income, $4,000, 2023 taxable income, $11,000, and 2024 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. The tax rates are 25% for years 2020, 2021, and 2022; and 30% for year 2023 and 2024.

Required

a. Provide the income tax entry for 2021.

Date	Account Name	Dr.	Cr.
Dec. 31, 2021	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer

b. Provide the income tax entry for 2022, assuming that the actual taxable income was $6,000 (tax rate, 25%).

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.

Date	Account Name	Dr.	Cr.
Dec. 31, 2022	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer

c. Provide the income tax entry for 2023, assuming that 2022 results were as described in (b), and that the actual 2023 taxable income was $13,000.

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.

Date	Account Name	Dr.	Cr.
Dec. 31, 2023	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer

d. Provide the entry for 2024, assuming results for 2022 and 2023 as described above and assuming that the actual 2024 taxable income was $45,000.

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.

Date	Account Name	Dr.	Cr.
Dec. 31, 2024	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer