Mallock Incorporated reports net operating income $($loss$)$ for financial reporting and tax purposes in each year as follows $($$ in

thousands$)$:

Mallock's federal tax rate decreased from $35\%$ to $21\%$ starting in $2018.$ Mallock accounts for its $2020$ NOL under the CARES Act.

Required:

Prepare the appropriate journal entry to record Mallock's $2020$ income taxes.

Show the lower portion of the $2020$ income statement that reports income tax expense or benefit.

Complete this question by entering your answers in the tabs below.

Prepare the appropriate journal entry to record Mallock's $2020$ income taxes.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

thousands $($i$.$e$.,5,500$ should be entered as $5\mathrm{.}5).$

Journal entry worksheet

Record $2020$ income tax benefit from operating loss.

Note: Enter debits before credits.