At the end of 2019, Keil Company reports a pretax operating loss of $80,500 for both financial reporting and income tax purposes. Prior to 2019, Keil had been successful and is expected to be successful in the future. The tax rate for 2019 and future years is 21%. Required: 1. Prepare Keil’s income tax journal entry at the end of 2019. 2. Prepare the lower portion of Keil’s 2019 income statement.
At the end of 2019, Keil Company reports a pretax operating loss of $80,500 for both financial reporting and income tax purposes. Prior to 2019, Keil had been successful and is expected to be successful in the future. The tax rate for 2019 and future years is 21%. Required: 1. Prepare Keil’s income tax journal entry at the end of 2019. 2. Prepare the lower portion of Keil’s 2019 income statement.
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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At the end of 2019, Keil Company reports a pretax operating loss of $80,500 for both financial reporting and income tax purposes. Prior to 2019, Keil had been successful and is expected to be successful in the future. The tax rate for 2019 and future years is 21%.
Required:
1. | Prepare Keil’s income tax |
2. | Prepare the lower portion of Keil’s 2019 income statement. |
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