Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer’s 2020 income taxes, and indicate Syer’s 2020 net income(loss).Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions):20162017201820192020$ 330)$ 130$ 0$0$ (660)Syer’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’s federal tax rate decreased from 35% to 21% starting in 2018. × Answer is not complete.Complete this question by entering your answers in the tabs below.Req 1AReq 1BReq 2AReq 2BPrepare 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.NoTransactionGeneral JournalA1Receivable-Income tax refundDeferred tax assetValuation allowance< Req 1BReq 2B >DebitCredit161 Answer is not complete.Complete this question by entering your answers in the tabs below.Req 1AReq 1BReq 2AReq 2BCalculate Syer's 2020 net income(loss).Note: Net loss amounts should be indicated with a minus sign.Net loss

Sure, let me break down each part of the journal entry:1. **Req 1A: Income Tax Expense (Debit)**…

Answered: × Answer is not complete. Complete this…

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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Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer’s 2020 income taxes, and indicate Syer’s 2020 net income(loss).

Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions):

2016	2017	2018	2019	2020
$ 330)	$ 130	$ 0	$0	$ (660)

Syer’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’s federal tax rate decreased from 35% to 21% starting in 2018.