Waterway Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Waterway Inc. follows IFRS. Year 2020 2021 2022 2023 Accounting Income (Loss) $142,000 98,000 (300,000) 196,000 Tax Rate 18% 18% 16% 16% The tax rates were all enacted by the beginning of 2020. Your answer is partially correct. Prepare the journal entries for the years 2020 to 2023 to record income taxes, assuming the tax loss is first carried back and that at the end of each year, 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. Record journal entries in the order presented in the problem.) ite Debit Credit 0 25560 25560 17640 Account Titles and Explanation Current Tax Expense Income Tax Payable Current Tax Expense Income Tax Payable Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) Deferred Tax Asset 17640 2 43,200 43,200 9,600 9,600 Deferred Tax Benefit (To record deferred tax benefit Current Attempt in Progress Waterway Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Waterway Inc. follows IFRS. Year 2020 2021 2022 2023 Accounting Income (Loss) $142,000 98,000 (300,000) 196,000 Tax Rate 18% 18% 16% 16% The tax rates were all enacted by the beginning of 2020. Your answer is partially correct. Prepare the journal entries for the years 2020 to 2023 to record income taxes, assuming the tax loss is first carried back and that at the end of each year, 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. Record journal entries in the order presented in the problem.) Debit Credit Date 2020 25560 Account Titles and Explanation Current Tax Expense Income Tax Payable Current Tax Expense Income Tax Payable 2! 2021 17640 2022 Income Tax Receivable 43,200 43 Current Tax Benefit (To record benefit from loss carryback.) Deferred Tax Asset 9,600 9 Deferred Tax Benefit (To record deferred tax benefit from loss carryforward.) Prepare the journal entries for the years 2020 to 2023 to record income taxes, assuming the tax loss is first carried back and that at the end of each year, 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. Record journal entries in the order presented in the problem.) Debit Credit Date 2020 Account Titles and Explanation Current Tax Expense 25560 Income Tax Payable 2: 2021 Current Tax Expense 17640 Income Tax Payable 17 2022 43,200 43 9,600 9 Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) Deferred Tax Asset Deferred Tax Benefit (To record deferred tax benefit from loss carryforward.) Current Tax Expense Income Tax Payable (To record current tax expense.) Deferred Tax Expense 2023 21760 2: 9600 Deferred Tax Asset To record deferred tax expense. Your answer is partially correct. Prepare the journal entries for 2022 and 2023 assuming that, based on the weight of available evidence, it is more likely than not that only 80% of the carryforward benefits will be realized (20% not expected to be realized). A valuation allowance account is not used by the company. (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. Record journal entries in the order presented in the problem.) ite Debit Credit 2 43,200 43,200 7,680 Account Titles and Explanation Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) Deferred Tax Asset Deferred Tax Benefit (To record deferred tax benefit from loss carryforward.) Current Tax Expense Income Tax Payable (To record current tax expense.) Deferred Tax Expense 7,680 3 23,680 23,680 7,680 7,680 Deferred Tax Asset (To record deferred tax expense.)