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Hallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands): 20162017201820192020$ 120$ 120$ 0$
Hallock Incorporated reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in thousands):
20162017201820192020$ 120$ 120$ 0$ 0$ (200)Hallocks federal tax rate decreased from 35% to 21% starting in 2018. Hallock accounts for its 2020 NOL under the CARES Act.
Required:
- Prepare the appropriate journal entry to record Hallocks 2020 income taxes.
- Show the lower portion of the 2020 income statement that reports income tax expense or benefit.
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