Assume the same information as in Brief Exercise 18-27 except that the Deferred Tax Asset account had a December 31, 2019, balance of \(\$ 1,800\). Record the income tax journal entry on December 31, 2020.

Exercise 18-27

Rangee Rover Inc. recorded pretax GAAP income of \(\$ 89,000\) in 2020. The GAAP basis of accounts receivable (net) is \(\$ 6,000\) less than the tax basis of accounts receivable. Assuming a tax rate of \(25 \%\), record the income tax journal entry on December 31, 2020. Assume zero beginning balances in deferred tax accounts.