Homework Quiz—15 S11 Section 3

Homework Quiz—15 S11 Section 3 - Benefit due to...

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Spring 11 Section 3 Homework Quiz —15 Name Section Income (Loss) Before Taxes for ABC Company for the current year (2010) and for the two years prior to 2010 and for the following four years are below. Tax rates are 40% for 2008-2010 and 35% for 2011 – 2014. 2008 $200,000 2009 215,000 2010 90,000 2011 (230,000) 2012 (540,000) 2013 160,000 2014 180,000 Required : Prepare journal entries to record income tax expense and the effects of loss carrybacks and carryforwards for 2010 through 2014. 2010 Debit Credit Income tax expense ($90,000 x .40) 36,000 Income tax payable 36,000 2011 Income tax refund receivable ([$215,000 + $15,000])(.40) 92,000 Benefit due to loss carryback 92,000 2012 Income tax refund receivable ($75,000 x .40) 30,000 Benefit due to loss carryback 30,000 Deferred tax asset ($465,000 x .35) 162,750
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Unformatted text preview: Benefit due to loss carryforward 162,750 2013 Deferred tax asset ($160,000 x .35) 56,000 Benefit due to loss carryforward 56,000 2014 Income tax expense ($180,000 x .35) 63,000 Deferred tax asset 63,000 1 Spring 11 Section 3 Homework Quiz —15 Name Section Income (Loss) Before Taxes for ABC Company for the current year (2010) and for the two years prior to 2010 and for the following four years are below. Tax rates are 40% for 2008-2010 and 35% for 2011 – 2014. 2008 $200,000 2009 215,000 2010 90,000 2011 (230,000) 2012 (540,000) 2013 160,000 2014 180,000 Required : Prepare journal entries to record income tax expense and the effects of loss carrybacks and carryforwards for 2010 through 2014. 2010 Debit Credit 2011 2012 2013 2014 2...
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This note was uploaded on 03/03/2012 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue.

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Homework Quiz—15 S11 Section 3 - Benefit due to...

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