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Apple Corporation reported pretax income from operations in 2020 of $72,000 (the first year of operations). In 2021, the corporation experienced a $36,000 pretax net
Apple Corporation reported pretax income from operations in 2020 of $72,000 (the first year of operations). In 2021, the corporation experienced a $36,000 pretax net operating loss NOL). Management is confident the company will have taxable income in excess of $45,000 in 2022. Assume an income tax rate of 25% in 2020 and thereafter. Foreman has no other temporary differences. Required: a) Provide the 2020 and 2021 income tax entries that Foreman should make. The entry or entries need to be in proper form and show all calculations, using words to describe each item, as part of the explanations. Round to whole dollars and two places for percentages. b) Show how all tax-related items would be reported on the 2020 and 2021 income statements beginning with "Income or (Loss) before income taxes and ending with "net income or (loss)." c) Show how all tax-related items would be reported on the 2020 and 2021 classified balance sheets. Indicate clearly whether each asset or liability item is current or noncurrent
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