Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows:2016$ 3002017$ 100Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability,Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer'sfederal tax rate decreased from 35% to 21% starting in 2018.Required:1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the generalrequirement that NOLs be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, andindicate Syer's 2020 net income(loss).Req 1AA2018$02. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's2020 income taxes, and indicate Syer's 2020 net income(loss).NoComplete this question by entering your answers in the tabs below.2019$0Req 1B2020$ (600)Transaction1Req 2APrepare the appropriate journal entry to record Syer's 2020 income taxes.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Req 2BGeneral JournalIncome tax expenseDeferred tax assetReceivable-Income tax refund< Req 1BReq 2B>XDebit35XCredit035 x

2018 $0 2019 $0 2020 $ (600) purposes year as by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer' not believe it is more likely than not that it will be able to realize deferred tax assets in fu I from 35% to 21% starting in 2018. es not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL usi Ls be carried forward. Prepare the appropriate journal entry to record Syer's 2020 inco net income(loss). er does account for its NOL under the CARES Act. Prepare the appropriate journal entry and indicate Syer's 2020 net income(loss).

2018 $0 2019 $0 2020 $ (600) purposes year as by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer' not believe it is more likely than not that it will be able to realize deferred tax assets in fu I from 35% to 21% starting in 2018. es not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL usi Ls be carried forward. Prepare the appropriate journal entry to record Syer's 2020 inco net income(loss). er does account for its NOL under the CARES Act. Prepare the appropriate journal entry and indicate Syer's 2020 net income(loss).

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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Ee 360.
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