Topper Company reported the following pretax financial income (loss) for the years 2018 through 2022: 2018 $70,000 20
Posted: Tue Nov 16, 2021 9:37 am
Topper Company reported the following pretax financial income
(loss) for the years 2018 through 2022:
2018 $70,000
2019 45,000
2020 (260,000)
2021 90,000
2022 215,000
Pretax financial income (loss) and taxable income (loss) were
the same for all years involved. The enacted tax rate was 30% for
all the years.
Instructions
(a) Prepare the journal entries for the years 2018
through 2022 to record income tax expense, income tax payable
(refundable).
(b) Prepare the income tax section of the 2020 income
statement beginning with the line “Income (loss) before income
taxes.”
(loss) for the years 2018 through 2022:
2018 $70,000
2019 45,000
2020 (260,000)
2021 90,000
2022 215,000
Pretax financial income (loss) and taxable income (loss) were
the same for all years involved. The enacted tax rate was 30% for
all the years.
Instructions
(a) Prepare the journal entries for the years 2018
through 2022 to record income tax expense, income tax payable
(refundable).
(b) Prepare the income tax section of the 2020 income
statement beginning with the line “Income (loss) before income
taxes.”