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Decker Corporation experienced a loss in 2020. Additional information for Decker Corporation follows. 2020 Taxable income (loss) Income tax rate.. $(65,000) 25% There were
Decker Corporation experienced a loss in 2020. Additional information for Decker Corporation follows. 2020 Taxable income (loss) Income tax rate.. $(65,000) 25% There were no temporary differences from 2018 to 2020 other than any related to a net operating loss carryforward. Required a. Record income taxes for 2020 and 2021 assuming the following. For 2021, the company computed taxable income of $45,000 and recognized a deferred tax liability bal- ance of $2,250 related to acquisition of depreciable assets in its year-end financial statements. These amounts were consistent with management's expectations. The income tax rate enacted in 2020 and effective for 2021 and thereafter is 30%. Management estimates the valuation allowance on the deferred tax asset related to its 2020 NOL to be zero. b. List the amounts that should be reported on the income statements and balance sheets for 2020 and 2021. Exerc Recom Report Carryle
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