Prepare the journal entries for each of the years to to record income taxes, assuming at
December that it was more likely than not that the company would not be able to benefit from
the remaining losses available to carry forward. List all debit entries before credit entries. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If
no entry is required, select No Entry" for the account titles and enter for the amounts.
Date
Account Titles and Explanation
Debit Prepare the income tax section of the income statements for each of the years to beginning
with the line "Income loss before income tax." Enter negative amounts using either a negative sign
preceding the number eg or parentheses eg Do not leave any answer field blank. Enter
for amounts.
IVANHOE INC.
Partial Income Statements
$
$
$
$Ivanhoe Inc. reports the following incomes losses for both book and tax purposes assume the carryback
provision is used where possible:
The tax rates listed were all enacted by the beginning of
