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Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2019 2017 $ 200 se 2016 $ 400) 2018 se 2020 $ (800) 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. Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLS be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss) 2. 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): 2019 2017 $ 200 se 2016 $ 400) 2018 se 2020 $ (800) 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. Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLS be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss) 2. 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).

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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$ 400) $(800) 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. Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLS be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Req 1A $ 200 2. Now assume that Syer does account for its NOLȚunder the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Complete this question by entering your answers in the tabs below. Net loss Req 2A Calculate Syer's 2020 net income(loss). Note: Net loss amounts should be indicated with a minus sign. 50 Req 18 Show Transcribed Text Req 1A $0 $ 200 Net loss $ 400) $ (800) 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. 50 Req 18 Req 28 $0 Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLS be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). < Req 1A 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Req 2A Complete this question by entering your answers in the tabs below. Req 2A > Req 28 Calculate Syer's 2020 net income(loss). Note: Net loss amounts should be indicated with a minus sign. < Req 2A Reg 20 >
Transcribed Image Text:$ 400) $(800) 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. Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLS be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Req 1A $ 200 2. Now assume that Syer does account for its NOLȚunder the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Complete this question by entering your answers in the tabs below. Net loss Req 2A Calculate Syer's 2020 net income(loss). Note: Net loss amounts should be indicated with a minus sign. 50 Req 18 Show Transcribed Text Req 1A $0 $ 200 Net loss $ 400) $ (800) 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. 50 Req 18 Req 28 $0 Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLS be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). < Req 1A 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Req 2A Complete this question by entering your answers in the tabs below. Req 2A > Req 28 Calculate Syer's 2020 net income(loss). Note: Net loss amounts should be indicated with a minus sign. < Req 2A Reg 20 >
Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2017 2018 $0 $ 200 2016 $ 400) 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. Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLS be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. 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). Complete this question by entering your answers in the tabs below. Req 1A View transaction list Req 18 Prepare 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. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Req 1A Journal entry worksheet Show Transcribed Text A < 2019 50 Req 2A View transaction list A Req 1B 2020 $ (800) Complete this question by entering your answers in the tabs below. Journal entry worksheet Transaction 1 Req 2A Note: Enter debits before credits. Req 28 Prepare 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. Enter your answers in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50). .... Reg 28 General Journal J Record the journal entry to record Syer's 2020 income taxes c Debit Credit
Transcribed Image Text:Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2017 2018 $0 $ 200 2016 $ 400) 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. Required: 1. Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLS be carried forward. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. 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). Complete this question by entering your answers in the tabs below. Req 1A View transaction list Req 18 Prepare 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. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Req 1A Journal entry worksheet Show Transcribed Text A < 2019 50 Req 2A View transaction list A Req 1B 2020 $ (800) Complete this question by entering your answers in the tabs below. Journal entry worksheet Transaction 1 Req 2A Note: Enter debits before credits. Req 28 Prepare 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. Enter your answers in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50). .... Reg 28 General Journal J Record the journal entry to record Syer's 2020 income taxes c Debit Credit
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