(Solved): 25 marks Nita Company began operations in 2019. The following information pertains to its operatio ...

25 marks Nita Company began operations in 2019. The following information pertains to its operations in the first three years: 2019 2020 2021 Assets purchased during the year $100,000 $0 $0 Pre-tax accounting income (loss) $25,000 $100,000 $10,000 Income tax rate (enacted each year) 35% 37% 42% Notes: Nita Company amortizes its assets straight-line over 5 years. Assume no residual/salvage value. The Capital Cost Allowance rate on the assets is 40%. Due to the untimely filing of the 2019 tax return Nita Company paid a $1,000 penalty. This was deducted in the 2020 income statement for accounting purposes. Nita Company collected dividends of $500 and $1,200 in 2019 and 2021, respectively. During 2020 Nita Company started a warranty program. $5,000 and $7,000 were expensed in 2020 and 2021 respectively. Actual expenditures under the warranty program were $3,000 and $8,000 for 2020 and 2021, respectively. Required: Prepare the income tax journal entries for 2019, 2020, and 2021. Show all calculations. Nita Company incurred a tax loss in 2022 of $500,000. The enacted tax rate in 2022 is 39%. Prepare the appropriate journal entry(s) pertaining to the loss for 2022. Assume that Nita Company wants to obtain the maximum refund from prior years and assume that the tax benefit of any loss carryforward should be recognized. Show your work. Assume that in 2023, Nita Company incurred a tax loss of $100,000. Further assume that the company decides that it is no longer appropriate to recognize the benefit for any of the loss carryforwards. Nita Company uses a valuation allowance method. The enacted tax rate in 2023 is 41%. Prepare appropriate journal entry(s) pertaining to the various losses. Show your work. Nita Company began operations in 2019. The following information pertains to its operations in the first three years: Notes: Nita Company amortizes its assets straight-line over 5 years. Assume no residual/salvage value. The Capital Cost Allowance rate on the assets is

. Due to the untimely filing of the 2019 tax return Nita Company paid a

penalty. This was deducted in the 2020 income statement for accounting purposes. Nita Company collected dividends of

and

in 2019 and 2021, respectively. During 2020 Nita Company started a warranty program.

and

were expensed in 2020 and 2021 respectively. Actual expenditures under the warranty program were

and

for 2020 and 2021, respectively. Required: Prepare the income tax journal entries for 2019, 2020, and 2021. Show all calculations. Nita Company incurred a tax loss in 2022 of

. The enacted tax rate in 2022 is

. Prepare the appropriate journal entry(s) pertaining to the loss for 2022. Assume that Nita Company wants to obtain the maximum refund from prior years and assume that the tax benefit of any loss carryforward should be recognized. Show your work. Assume that in 2023 , Nita Company incurred a tax loss of

. Further assume that the company decides that it is no longer appropriate to recognize the benefit for any of the loss carryforwards. Nita Company uses a valuation allowance method. The enacted tax rate in 2023 is

. Prepare appropriate journal entry(s) pertaining to the various losses. Show your work.