Burgher Ltd. had a taxable loss of $300,000 in 20x7. The tax rate in 20X7...
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Burgher Ltd. had a taxable loss of $300,000 in 20x7. The tax rate in 20X7 is 32%. In the past three years, the company had the following taxable income and tax rates: Taxable income Tax rate 20x4 20X5 20X6 $200,000 $120,000 C80,000 361 38 405 There are no temporary differences other than those created by income tax losses Required: 1. What is the amount of refund that will be claimed in 20x7, taking the loss back to the oldest possible year first? Provide the journal entry for income tax receivable in 20x7. (If no entry is required for a transaction/event, select "No journal entry required" in the flest account field.) Refund amount Journal entry worksheet 1 Record the entry for income tax recoverable. Note: Enter debits before credits. General Journal Debit Credit Date 20X7 Record entry Clear entry View general journal 2. Is there a different pattern for claiming a refund that the company could use? Recalculate the refund and provide the journal entry under this assumption. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field) Refund amount View transaction list Journal entry worksheet Record the entry for income tax recoverable
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