Mallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ inthousands):DMallock's federal tax rate decreased from 35% to 21% starting in 2018. Mallock accounts for its 2020 NOL under the CARES Act.Required:1. Prepare the appropriate journal entry to record Mallock's 2020 income taxes.2. Show the lower portion of the 2020 income statement that reports income tax expense or benefit.2016$ 1602017$ 502018$ 02019$ 02020$ (240)

Journal entry:The monetary transaction of business is recorded in the books of accounts called the…

Answered: Mallock Incorpe thousands): 2016 201 $…

Business

Accounting

Mallock Incorpe thousands): 2016 201 $ 160 $ 5 Mallock's fede Required: 1. Prepare 2. Show the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Mallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in
thousands):
D
Mallock's federal tax rate decreased from 35% to 21% starting in 2018. Mallock accounts for its 2020 NOL under the CARES Act.
Required:
1. Prepare the appropriate journal entry to record Mallock's 2020 income taxes.
2. Show the lower portion of the 2020 income statement that reports income tax expense or benefit.
2016
$ 160
2017
$ 50
2018
$ 0
2019
$ 0
2020
$ (240)

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