Question

i need to get this correct! i got one last attempt!!

ng 5 e and al Question 2 View Policies Show Attempt History Current Attempt in Progress Con Skysong Inc. reports the following pretax income (loss) for both book and tax purposes. pport Pretax Year Income (Loss) Tax Rate 2018 $117,000 20% 2019 83,000 20% 2020 (256,000) 25 % 2021 132,000 25% The tax rates listed were all enacted by the beginning of 2018. (a) I Your answer is correct Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable (refundable), anu of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the ben carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no. select "No Entry for the account titles and enter for the amounts.)

Answer 1

Date	Journal Entries	Debit($)	Credit ($)
2018	Income Tax Expense	23400
	Income Tax Payable ($117000 X 20%)		23400
	(To record income tax expense)
2019	Income Tax Expense	16600
	Income Tax Payable (83000 *20%)		16600
	(To record income tax expense)
2020	Income Tax Refund Receivable	40000
	Deferred Tax Asset	14000
	Benefit Due to Loss Carryback (23400+16600)		40000
	Benefit Due to Loss Carry forward (256000 - 1170000 - 83000) x 25%		14000
	(To record deferred tax asset and income tax refundable)
	Benefit Due to Loss Carryforward	7000
	Allowance to Reduce Deferred Tax Asset (14000x 50%)		7000
	(To adjust one-half allowance of deferred tax asset)
2021	Income Tax Expense (132000x 25%)	33000
	Deferred Tax Asset		14000
	Income Tax Payable (Balancing fig) ( 132000 - (-256000+117000+83000) )x 25%		19000
	(To record income tax expense)
	Allowance to Reduce Deferred Tax Asset	7000
	Benefit Due to Loss Carryforward		7000
	(To adjust allowance as deferred tax asset has been used fully)

Skysong Inc
Income Statement (Partial) for the year ended December 31 2020
Operating Loss before Income Taxes	$ (256000)
Income Tax Benifit
Benifit due to Loss carryforward	$ 7000
Benifit due to Loss carryback	$ 40000
Net Income / (Loss)	$ (209000)

Skysong Inc
Income Statement (Partial) for the year ended December 31 2021
Operating Loss before Income Taxes	$ 132000
Income Tax Benifit
Less: Income Tax Expenses
Current Tax	$ 19000
Deffered Tax	$ 14000
Benifit due to Loss carryforward	$ (7000)
Net Income / (Loss)	$ 158000