Year Pretax Income (Loss) Tax Rate Date Account Titles and Explanation Debit Cre
ID: 2558633 • Letter: Y
Question
Year
Pretax Income
(Loss)
Tax Rate
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
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SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
(To record refund.)
(To record allowance.)
(To record income taxes.)
(To adjust allowance.)
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Windsor Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.)Year
Pretax Income
(Loss)
Tax Rate
2015 $129,000 34 % 2016 84,000 34 % 2017 (264,000 ) 38 % 2018 236,000 38 %The tax rates listed were all enacted by the beginning of 2015.
Explanation / Answer
Journal Entry Date Accounts Title Debit Credit 2015 Income Tax Expense ($129000*34%) $43,860.00 Income Tax Payable $43,860.00 To Record Income Tax Expense 2016 Income Tax Expense ($84000*34%) $28,560.00 Income Tax Payable $28,560.00 To Record Income Tax Expense 2017 Income Tax Refund Receivable $72,420.00 Deffered Tax Asset $19,380.00 Benefit due to Loss Carryback $72,420.00 Benefit due to Loss Carry Forward $19,380.00 To Record Loss Carryback and Forward 2018 Income Tax Expense $89,680.00 Income Tax Payable $70,300.00 Deferred Tax Asset $19,380.00 To Record Income Tax expense
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