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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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Entries for 2019 and 2020 2019 Income Tax Expense 85000 debit Deferred Tax Benefit 83000 credit Additional Tax Expense 2000 debit if Luna believes 2000 of benefit wont be realized 2020 Income Tax Expe... blur-text-image

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