Tyson Corporation reported pretax income from operations in 2020 of \(\$ 80,000\) (the first year of operations). In 2021, the corporation experienced a \(\$ 40,000\) NOL (pretax loss from operations). Management is confident the company will have taxable income in excess of \(\$ 50,000\) in 2022. Assume an income tax rate of \(25 \%\) in 2020 and thereafter. Tyson has no other temporary differences.

Required

a. Provide the 2020 and 2021 income tax entries that Tyson should make.

b. Show how all tax-related items would be reported on the 2020 and 2021 income statements and balance sheets.