At the end of 2019, Keil Company reports a pretax operating loss of $79,600 for both financial reporting and income tax purposes. Prior to 2019, Keil had been successful and is expected to be successful in the future. The tax rate for 2019 and future years is 21%.

Required:

1.	Prepare Keils income tax journal entry at the end of 2019.
2.	Prepare the lower portion of Keils 2019 income statement.

CHART OF ACCOUNTSKeil CompanyGeneral Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
160	Deferred Tax Asset
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
905	Income Tax Benefit from Operating Loss Carryforward
910	Income Tax Benefit from Operating Loss Carryback