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Luna reported the following taxable income/loss and applicable taxes paid. Assume tax rate of 20%. Income/Loss Taxes 2018 100,000 $30,000 paid 2019 (425,000) enacted rate
Luna reported the following taxable income/loss and applicable taxes paid. Assume tax rate of 20%. Income/Loss Taxes 2018 100,000 $30,000 paid 2019 (425,000) enacted rate 25% 2020 450,000 enacted rate 20% Give the entries in 2019 and 2020: 2019: Debits Credits 2020: Give the Income Statement presentation for 2019: - If in 2019, Luna believed that it was more likely than not that $2,000 of the Deferred Tax Benefit would not be realized. Give any additional 2019 entry
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