Friedman Construction reported taxable income of $50,000 for 2011, its first fiscal year. The enacted tax rate for 2011 is 40%. Enacted tax rates and deductible amounts for 2012–2014 are as follows:

1. Prepare the journal entries necessary to record income taxes for 2011. Assume that there will be sufficient income in each future year to realize any deductible amounts. For classification purposes, assume that all deductible amounts relate to noncurrent items.
2. Repeat (1), assuming that it is more likely than not that taxable income for all future periods will be zero orless.

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Enacted Tax Rate Deductible Amount 2012 2013. 38% 35 36 $12.000 15.000 18.000 2014...