80.2K

Verified Solution

Link Copied!

if I can also get the breakdown of each answer too that would be much appreciated. Thank you!

Novak Corporation reported the following income for each of the years indicated. For each year, accounting income and income for tax purposes were the same. All tax rates indicated were enacted by the beginning of 2020. Novak's policy is to carry back any tax losses first before carrying forward any remaining losses to future years. Year 2020 2021 2022 2023 2024 2025 Income (Loss) 32.000 47,000 15,000 (114,000) (49,000) 88,000 Tax Rate 30% 33% 35% 38% 32% 32% Prepare the journal entries for the years 2022 to 2025 to record income taxes. Assume that, at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. Novak follows the future income taxes method under ASPE. (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.) Date Account Titles and Explanation Debit Credit 2022 V Current Tax Expense 5250 Income Tax Payable 5250 2023 Income Tax Receivable Current Tax Benefit (To record benefit from loss carryback.) (To recognize benefit of loss carryforward.) 2024 INTE 2025 Future Tax Expense IT Income Tax Payable (To record future tax expense.) Current Tax Expense Income Tax Payable (To record current tax expense.)

Answer & Explanation Solved by verified expert

See Answer