Pronghorn Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax...
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Accounting
Pronghorn Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes:
Accounting
Income
Year
(Loss)
Tax Rate
2018
$130,000
25
%
2019
93,000
25
%
2020
(299,000
)
30
%
2021
225,000
30
%
The tax rates listed were all enacted by the beginning of 2018. Pronghorn reports under the ASPE future/deferred income taxes method.
(a)
Prepare the journal entries for each of the years 2018 to 2021 to record income tax. Assume the tax loss is first carried back, and that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future
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