1. NOLs

In 2021, its first year of operations, Platte Corp. has a $400,000 net operating loss when the tax rate is 20%. Management of Platte Corp. thinks that it is more likely than not that 1/4 of the loss carryforward will not be realized. This is before results of 2022 operations are known.

In 2022, Platte has $600,000 taxable income and the tax rate remains 20%.

Instructions: show work

1. Prepare the entry or entries for 2021.
2. Prepare the entry or entries for 2022,