Prepare the journal entries to record income taxes

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Question - Leopard Limited reported the following pre-tax incomes (losses) for both financial reporting and tax purposes:

Year

Accounting and Taxable Income (Loss)

Tax Rate

2018

$240,000

35%

2019

180,000

35%

2020

(560,000)

40%

2021

440,000

40%

The tax rates were enacted at the beginning of each year for that year.

Required - Prepare the journal entries to record income taxes for Leopard Limited for 2020 and 2021. The company uses the carry back provision first. Assume that utilization of the tax loss carry-forward was expected.

Reference no: EM132734712

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