Assume tax rate is 21%

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Problem 13 [NOL inverted] ABC reported pretax income of $100,000 in 2020. ABC sustained a net operating loss in 2019, resulting in the recognition of a deferred tax asset of $31,500 on its December 31, 2019 balance sheet. ABC's tax accounting methods and GAAP accounting methods are the same in both 2019 and 2020. There were no permanent differences in either 2019 or 2020. 1. Prepare the entries needed to record current and deferred income taxes at December 31, 2020. Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Account Debit Credit 1 1 1 1 1 1 Enter your answer to the following question in the green box What amount of net income will be reported on the 2020 income statement? 2 Deferred income tax asset (Bal. Sht) Deferred income tax asset valuation allowance (Bal. Sht) Deferred income tax liability (Bal.Sht) Income tax payable (Bal.Sht) Liability for uncertain tax position (Bal. Sht) Income tax expense (Inc. Stmt) Problem 13 [NOL inverted] ABC reported pretax income of $100,000 in 2020. ABC sustained a net operating loss in 2019, resulting in the recognition of a deferred tax asset of $31,500 on its December 31, 2019 balance sheet. ABC's tax accounting methods and GAAP accounting methods are the same in both 2019 and 2020. There were no permanent differences in either 2019 or 2020. 1. Prepare the entries needed to record current and deferred income taxes at December 31, 2020. Enter your entries below. Choose the account from the drop-down list in the yellow cell. Enter the amount of the entry in the green box. Account Debit Credit 1 1 1 1 1 1 Enter your answer to the following question in the green box What amount of net income will be reported on the 2020 income statement? 2 Deferred income tax asset (Bal. Sht) Deferred income tax asset valuation allowance (Bal. Sht) Deferred income tax liability (Bal.Sht) Income tax payable (Bal.Sht) Liability for uncertain tax position (Bal. Sht) Income tax expense (Inc. Stmt)