Prepare the journal entries for the years 2021

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Reference no: EM133433729

The accounting income (loss) and related tax rates during the years 2017 to 2023 follows:

Year	Accounting income (loss)	Tax Rate
2017	$190,000	22%
2018	95,000	22%
2019	(140,000)	22%
2020	90,000	32%
2021	(320,000)	37%
2022	180,000	32%
2023	240,000	27%

Accounting income (loss) and taxable income (loss) were the same for all years since the company began. The tax rates from 2020 to 2023 were enacted in 2020.

Required:

Prepare the journal entries to record income taxes for the years 2019 to 2023. Assume the company uses the carryback provision where possible and expects to realize the benefits of any loss carryforward in the year immediately following the loss.
Indicate the effect on the December 31, 2021 balance sheet if the company follows ASPE. How would it be different if the company follows IFRS?
Beginning with "Loss before income tax" show the bottom of the income statement for 2021.
Beginning with "Loss before income tax" show the bottom of the income statement for 2022.

Prepare the journal entries for the years 2021 to 2023 to record income taxes, assuming the company uses the carry back provision where possible but is uncertain if it will realize the benefits of any loss carry forward

Reference no: EM133433729

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