60.1K

Verified Solution

Link Copied!

Blossom inc, reports the following pretax income (loss) for both book and tax purposes. The tax rates listed were all enacted by the beginning of 2023. (a) Your answer is correct. Prepare the journal entries for years 2023-2026 to record income tax expense (benefit) and income taxes payable (refunda and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than nc one-half of the benefits of the loss carryforward will not be realized. (List all debit entries before credit entries. Credit account tit; Prepare the journal entries for years 20232026 to record income tax expense (benefit) and income taxes payable (refundable). 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-half of the benefits of the loss carryforward will not be realized. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manuolly. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Income Tax Expense (To record income taxes.) Income Tax Expense 12875 Allowance to Reduce Deferred Tax Asset to Expected Rea (To record allowance.) 2026 Income Tax Expense 27250 Deferred Tax Asset Delerted Tix Asset (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected Realiz incoine Tax Expense 12875 (To adjust allowance.) Prepare the income tax section of the 2025 income statement beginning with the line "Operating loss before income taxes." (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)

Answer & Explanation Solved by verified expert

See Answer