The following information pertains to XYZ Inc.: Year Taxable Income (Loss) Tax Rate Taxes Paid 2019 $100,000 25% $25,000 2020 $250,000 30% $75,000 2021 $360,000 22% $79,200 2022 $400,000 26% $104,000 2023 $500,000 24% $120,000 2024 $(600,000) 25% - Assuming that XYZ has a policy of tax refund maximization, how much would the company be able to recover in taxes through the use of its 2024 tax loss? Multiple Choice $141,600 $152,000 $133,000 $145,000 Verena Inc. earned income in 20x4 and suffered a loss for tax purposes in 20x5. Assume that even after carrying back and recovering taxes previously paid, there is still some loss remaining to carry forward. The journal entry related to the recognition of any benefit from carry-forward will be recognized as follows (assume the realization is probable) Multiple Choice Dr. income tax payable; cr. deferred tax asset. Dr. income tax expense; Cr. deferred tax asset. Dr. deferred tax asset; Cr. income tax payable. Dr. deferred tax asset; Cr. income tax expense.
The following information pertains to XYZ Inc.: Year Taxable Income (Loss) Tax Rate Taxes Paid 2019 $100,000 25% $25,000 2020 $250,000 30% $75,000 2021 $360,000 22% $79,200 2022 $400,000 26% $104,000 2023 $500,000 24% $120,000 2024 $(600,000) 25% - Assuming that XYZ has a policy of tax refund maximization, how much would the company be able to recover in taxes through the use of its 2024 tax loss? Multiple Choice $141,600 $152,000 $133,000 $145,000 Verena Inc. earned income in 20x4 and suffered a loss for tax purposes in 20x5. Assume that even after carrying back and recovering taxes previously paid, there is still some loss remaining to carry forward. The journal entry related to the recognition of any benefit from carry-forward will be recognized as follows (assume the realization is probable) Multiple Choice Dr. income tax payable; cr. deferred tax asset. Dr. income tax expense; Cr. deferred tax asset. Dr. deferred tax asset; Cr. income tax payable. Dr. deferred tax asset; Cr. income tax expense.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information pertains to XYZ Inc.:
| Year | Taxable Income (Loss) | Tax Rate | Taxes Paid |
| 2019 | $100,000 | 25% | $25,000 |
| 2020 | $250,000 | 30% | $75,000 |
| 2021 | $360,000 | 22% | $79,200 |
| 2022 | $400,000 | 26% | $104,000 |
| 2023 | $500,000 | 24% | $120,000 |
| 2024 | $(600,000) | 25% | - |
Assuming that XYZ has a policy of tax refund maximization, how much would the company be able to recover in taxes through the use of its 2024 tax loss?
Multiple Choice
-
$141,600
-
$152,000
-
$133,000
-
$145,000
- Verena Inc. earned income in 20x4 and suffered a loss for tax purposes in 20x5. Assume that even after carrying back and recovering taxes previously paid, there is still some loss remaining to carry forward. The
journal entry related to the recognition of any benefit from carry-forward will be recognized as follows (assume the realization is probable)Multiple Choice-
Dr. income tax payable; cr.
deferred tax asset . -
Dr. income tax expense; Cr. deferred tax asset.
-
Dr. deferred tax asset; Cr. income tax payable.
-
Dr. deferred tax asset; Cr. income tax expense.
-
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