FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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Transcribed Image Text: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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