Bramble Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022....

60.1K

Verified Solution

Question

Accounting

Bramble Inc. reported the following pretax income (loss) andrelated tax rates during the years 2019–2022. Pretax Income (loss)Tax Rate 2019 $84,800 40 % 2020 (190,800) 40 % 2021 212,000 20 %2022 106,000 20 % Pretax financial income (loss) and taxable income(loss) were the same for all years since Bramble began business.The tax rates from 2019–2022 were enacted in 2019.
Prepare the journal entries for the years 2020–2022 to recordincome taxes payable (refundable), income tax expense (benefit),and the tax effects of the loss carryforward. Assume that Brambleexpects to realize the benefits of any loss carryforward in theyear that immediately follows the loss year.
Prepare the portion of the income statement, starting with“Operating loss before income taxes,” for 2020.
Prepare the portion of the income statement, starting with“Income before income taxes,” for 2021.

Answer & Explanation Solved by verified expert

4.3 Ratings (773 Votes)

Solution Journal Entries Bramble Inc Year Particulars Debit Credit 2020 Receivables Income Tax Refund 3392000 Deferred Tax Assets Dr 2120000 To Income tax benefit Net Operating Loss 5512000 Being See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member