Culver Inc. incurred a net operating loss of $ 583,700 in 2020. Combined income for 2017, 2018, and 2019 was $ 459,800. The tax rate for all years is 30%. Assume that it is more likely than not that the entire tax loss carryforward will not be realized in future years. Assume that Culver earns taxable income of $ 21,600 in 2021 and that at the end of 2021 there is still too much uncertainty to recognize a deferred tax asset. Your answer is partially correct. Prepare the journal entries that are necessary at the end of 2021 assuming that Culver does not use a valuation allowance account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Year Account Titles and Explanation Debit Credit 2021 Current Tax Expense 21600 Income Tax Payable 21600 (To record current tax expense) 2021 Income Tax Payable 21600 Current Tax Benefit 21600 (To record current tax benefit) Prepare the journal entries that are necessary at the end of 2021 assuming that Culver does use a valuation allowance account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Year Account Titles and Explanation Debit Credit 2021 Deferred Tax Expense 21600 21600 (To record deferred tax expense) 2021 Allowance to Reduce Deferred Tax Asset to Expected Realiz 21600 21600 (To bring the Deferred Tax Asset account to its realizable value) Culver Inc. incurred a net operating loss of $ 583,700 in 2020. Combined income for 2017, 2018, and 2019 was $ 459,800. The tax rate for all years is 30%. Assume that it is more likely than not that the entire tax loss carryforward will not be realized in future years. Assume that Culver earns taxable income of $ 21,600 in 2021 and that at the end of 2021 there is still too much uncertainty to recognize a deferred tax asset. Your answer is partially correct. Prepare the journal entries that are necessary at the end of 2021 assuming that Culver does not use a valuation allowance account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Year Account Titles and Explanation Debit Credit 2021 Current Tax Expense 21600 Income Tax Payable 21600 (To record current tax expense) 2021 Income Tax Payable 21600 Current Tax Benefit 21600 (To record current tax benefit) Prepare the journal entries that are necessary at the end of 2021 assuming that Culver does use a valuation allowance account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Year Account Titles and Explanation Debit Credit 2021 Deferred Tax Expense 21600 21600 (To record deferred tax expense) 2021 Allowance to Reduce Deferred Tax Asset to Expected Realiz 21600 21600 (To bring the Deferred Tax Asset account to its realizable value)