BE 13&14

BE19.12 (LO 3 ) Rode Inc. incurred a net operating loss of $500,000 in 2020. The tax rate for all years is 20%. Prepare the journal entries to record the benefits of the loss carryforward. Rode expects to return to profitability in 2021. BE19.13 (LO 3 ) Use the information for Rode Inc. given in BE19.12. Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years. Prepare all the journal entries necessary at the end of 2020 BE19.14 (LO 4 ) Youngman Corporation has temporary differences at December 31, 2020, that result in the following deferred taxes. Deferred tax liability related to depreciation difference $38,000 Deferred tax asset related to warranty liability 62,000 Deferred tax liability related to revenue recognition 96,000 Deferred tax asset related to litigation accruals 27,000 Indicate how these balances would be presented in Youngman's December 31, 2020, balance sheet