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Htech Corp. started its operation in 2010 and has a $550,000 net operating loss when the tax rate is 35%. In 2011, the company has $680,000 taxable income and the tax rate is revised to 40% in early 2011.
a. What are the entries in 2010 to record the tax loss carry-forward?(Assuming that it is more likely than not that half of the loss carry-forward will not be realized)
b. What entries would be made to record income tax expenses in 2011?
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Zephre Company reported net income for the year of $56,000. Depreciation expense for the year was $12,000. During the year, accounts receivable increased by $4,000, inventory decreased by $6,000, accounts payable increased by $3,000, and accrued e..
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