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Hallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 2016 2017 2018 2019 $ 100 $ 100 $0 2020 $0 $ (180) Hallock's federal tax rate decreased from 35% to 21% starting in 2018. Hallock accounts for its 2020 NOL under the CARES Act. Required: 1. Prepare the appropriate journal entry to record Hallock's 2020 income taxes. 2. Show the lower portion of the 2020 income statement that reports income tax expense or benefit.

Hallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 2016 2017 2018 2019 $ 100 $ 100 $0 2020 $0 $ (180) Hallock's federal tax rate decreased from 35% to 21% starting in 2018. Hallock accounts for its 2020 NOL under the CARES Act. Required: 1. Prepare the appropriate journal entry to record Hallock's 2020 income taxes. 2. Show the lower portion of the 2020 income statement that reports income tax expense or benefit.

FINANCIAL ACCOUNTING
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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Required 1 Required 2 Show the lower portion of the 2020 income statement that reports income tax expense or benefit. Note: Enter your answers in thousands. Income tax benefit Operating loss before income taxes Net loss Net income Net loss Show Transcribed Text Required 1 Required 2 Income tax benefit ---------------- stimm lann hafore income tavan $ Show the lower portion of the 2020 income statement that reports income tax expense or benefit. Note: Enter your answers in thousands. Income tax benefit Income tax expense Operating loss before income taxes Receivable Income tax refund 37,800 180,000 $ (142,200) Required 1 $ 37,800 180,000 $ (142,200) Required 2 > Required 1 Required 2 >
Transcribed Image Text:Required 1 Required 2 Show the lower portion of the 2020 income statement that reports income tax expense or benefit. Note: Enter your answers in thousands. Income tax benefit Operating loss before income taxes Net loss Net income Net loss Show Transcribed Text Required 1 Required 2 Income tax benefit ---------------- stimm lann hafore income tavan $ Show the lower portion of the 2020 income statement that reports income tax expense or benefit. Note: Enter your answers in thousands. Income tax benefit Income tax expense Operating loss before income taxes Receivable Income tax refund 37,800 180,000 $ (142,200) Required 1 $ 37,800 180,000 $ (142,200) Required 2 > Required 1 Required 2 >
Hallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 2020 2016 2017 2018 2019 $100 $ 100 $0 $0 $ (180) Hallock's federal tax rate decreased from 35% to 21% starting in 2018. Hallock accounts for its 2020 NOL under the CARES Act. Required: 1. Prepare the appropriate journal entry to record Hallock's 2020 income taxes. 2. Show the lower portion of the 2020 income statement that reports income tax expense or benefit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Hallock's 2020 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands. Show Transcribed Text Journal entry worksheet 1 Note: Enter debits before credits. Record 2020 income tax benefit from operating loss. Transaction 1 Record entry 3 General Journal Receivable-Income tax refund Deferred tax asset Income tax expense c Clear entry Debit 37,800 Credit 25,200 12,600 View general journal
Transcribed Image Text:Hallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 2020 2016 2017 2018 2019 $100 $ 100 $0 $0 $ (180) Hallock's federal tax rate decreased from 35% to 21% starting in 2018. Hallock accounts for its 2020 NOL under the CARES Act. Required: 1. Prepare the appropriate journal entry to record Hallock's 2020 income taxes. 2. Show the lower portion of the 2020 income statement that reports income tax expense or benefit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Hallock's 2020 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands. Show Transcribed Text Journal entry worksheet 1 Note: Enter debits before credits. Record 2020 income tax benefit from operating loss. Transaction 1 Record entry 3 General Journal Receivable-Income tax refund Deferred tax asset Income tax expense c Clear entry Debit 37,800 Credit 25,200 12,600 View general journal
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