Tamarisk Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $(84,000) 25 % 2021 (90,000) 20 % 2022 78,000 20 % 2023 57,000 20 % 2024 (132,000) 20 % 2025 95,000 25 % 2026 162,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Tamarisk has been in business. Tax rates were not enacted until the year of change. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) (b) Indicate what the income tax expense portion of the income statement for 2021 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Tamarisk Corporation Income Statement (Partial) $

Tamarisk Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2020 through 2026 as follows. Income (Loss) Tax Rate 2020 $(84,000) 25 % 2021 (90,000) 20 % 2022 78,000 20 % 2023 57,000 20 % 2024 (132,000) 20 % 2025 95,000 25 % 2026 162,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Tamarisk has been in business. Tax rates were not enacted until the year of change. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) (b) Indicate what the income tax expense portion of the income statement for 2021 should look like. Assume all income (loss) relates to continuing operations. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Tamarisk Corporation Income Statement (Partial) $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 18E

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Similar questions

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