Metlock Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Metlock Inc. follows
IFRS.
Year
Accounting Income (Loss)
Tax Rate
2023
$306,000
25%
2024
120,000
25%
2025
(561,000)
22%
2026
426.000
22%
The tax rates were all enacted by the beginning of 2023.
(a)
Your answer is partially correct.
Prepare the journal entries for the years 2023 to 2026 to record income taxes, assuming the tax loss is first carried back and that
at the end of each year, the loss carryforward benefits are judged more likely than not to be realized in the future. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the
account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit
entries.)
Darba
Account Titles and Explanation
Debit
Credit
2023
Current Tax Expense
76500
Income Tax Payable
2024
Current Tax Expense
30000
Income Tax Payable
2025
Income Tax Receivable
106500
Current Tax Benefit
(To record benefit from loss carryback)
2025
Deferred Tax Asset
23760
Deferred Tax Benefit
(To record deferred tax benefit from loss carryforward)
2026
Current Tax Expense
106500
Income Tax Payable
(To record current tax expense)
2026
Deferred Tax Expense
23760
Deferred Tax Asset
(To record deferred tax expense)
7650
3000
10650
2376
10650
2376
