n 2023, AC3220 Inc. reported a $500,000 loss for tax purposes. The tax rate is 25%, and is likely to remain at this rate for the foreseeable future. AC3220 reports under IFRS. The following are the recent income amounts earned by AC3220since 2023. Year Income 2019 200,000 2020 100,000 2021 100,000 2022 100,000 2023 (500,000) Management feels it is probable that there will be future taxable incomes against which the 2023 loss could be applied. Instructions a) Assuming that AC3220 takes advantage of the tax loss carryback provisions, what entries (if any) would be prepared in 2023 to record the loss carryback? b) Assuming that AC3220 takes advantage of the tax loss carryback provisions, what entries (if any) would be prepared in 2023to record the loss carryforward?
n 2023, AC3220 Inc. reported a $500,000 loss for tax purposes. The tax rate is 25%, and is likely to remain at this rate for the foreseeable future. AC3220 reports under IFRS. The following are the recent income amounts earned by AC3220since 2023. Year Income 2019 200,000 2020 100,000 2021 100,000 2022 100,000 2023 (500,000) Management feels it is probable that there will be future taxable incomes against which the 2023 loss could be applied. Instructions a) Assuming that AC3220 takes advantage of the tax loss carryback provisions, what entries (if any) would be prepared in 2023 to record the loss carryback? b) Assuming that AC3220 takes advantage of the tax loss carryback provisions, what entries (if any) would be prepared in 2023to record the loss carryforward?
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