Create the tax-related journal entries

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Reference no: EM132602382

Accounting income or loss for Brock Corporation follows:

2017=$240,000

2018=375,000

2019=120,000

2020=(240,000)

2021=(570,000)

2022=195,000

2023=217,500

For all years above, the accounting income was the same as the taxable income. The tax rate for 2017 and 2018 was 30%. The tax rate for 2019 to 2023 was 25%.

Instructions

Question 1: Create the tax-related journal entries for 2019 to 2023. Brock Corp. believes that it will be able to use any loss carryforward in future years. Brock will use the available carryback provisions to the earliest years first. Include your calculations.

Reference no: EM132602382

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