Mallock Incorpe thousands): 2016 201 $ 160 $ 5 Mallock's fede Required: 1. Prepare 2. Show the
Mallock Incorpe thousands): 2016 201 $ 160 $ 5 Mallock's fede Required: 1. Prepare 2. Show the
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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F148f0f2d-11b8-4514-a16a-8b87c9e23378%2F89727637-5ca7-4b65-9539-77e2b68964fc%2Fe1rcjzm_processed.jpeg&w=3840&q=75)
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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