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Mixies Industries, Ltd., follows IFRS and reported the following taxable incomes/losses and tax rates for...

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Accounting

Mixies Industries, Ltd., follows IFRS and reported the following taxable incomes/losses and tax rates for the first five years ended December 31:

GENERAL INFORMATION

2016 2017 2018 2019 2020

Taxable income (loss) 50,000 (400,000) 100,000 230,000 620,000

Tax rate 25% 40% 34% 34% 42%

Mixies had decided to always first carryback losses in any given year before carrying them forward. All tax rate changes were enacted as of the beginning of the year and these rates were not known until the year of change.

REQUIRED:

1. Prepare the journal entry/entries on December 31, 2017 to record only the loss carryback and/or loss carryforward for the loss in 2017. Assume there are no uncertainties about the realization of the net loss reported at December 31, 2017 and that it was more likely than not for it to generate profits in the years following any loss.

***Can you please provide the journal entries (example: " Dr. Income tax receivable 12,500, Cr. Income tax benefit 12,500")

2. For the loss of 2017 that is carried forward, prepare the related journal entry/entries required to be made in 2018, 2019 and 2020.

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