Assume that ABC Ltd. incurred a ($6,000,000) loss in fiscal 2021 due to losing a...
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Assume that ABC Ltd. incurred a ($6,000,000) loss in fiscal 2021 due to losing a very large lawsuit which was a one-time extraordinary event. ABC Ltd. also had a taxable income of $4,000,000 in fiscal 2017 when the tax rate was 15%. The company broke even in 2019 2020. Tax rates are expected to decrease in the future to 10%. The company is still very short of cash from losing the lawsuit.
Prepare the required entries based on the above information.
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