Hwang Inc. had taxable income of $100,000 in 2017, no income or loss in 2018 and 2019,

Question:

Hwang Inc. had taxable income of $100,000 in 2017, no income or loss in 2018 and 2019, and an NOL of $50,000 in 2020. The applicable tax rate was 40% in 2017 and 25% in 2018 and thereafter. Prepare the journal entry that Hwang would make in 2020, assuming it accounted for the NOL under the CARES Act.

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