Novak Corporation reports the following amounts in its first three years of operations.

		2020		2021		2022
Taxable income		$242,300		$120,300		$122,300
Accounting income		157,000		138,400		134,000

The difference between taxable income and accounting income is due to one reversing difference. The tax rate is 30% for all years and the company expects to continue with profitable operations in the future.

For each year, identify the amount of the reversing difference originating or reversing during that year, and indicate the amount of the temporary difference at the end of the year.

		Amount of Temporary				Deductible
		Difference Originating				Temporary
		or Reversing				Difference
Year		during the Year				at YearEnd
2020		$		OriginatingReversing		$
2021		$		OriginatingReversing		$
2022		$		OriginatingReversing		$

eTextbook and Media

List of Accounts

Indicate the balance in the related deferred tax account at the end of each year and identify it as a deferred tax asset or liability.

		12/31/2020		12/31/2021		12/31/2022
Deferred tax assetliability		$		$		$

eTextbook and Media

List of Accounts

Prepare the journal entries at the end of all three years to record current and deferred taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2020
	(To record current tax expense)
	(To record deferred tax benefit)
2021
	(To record current tax expense)
	(To record deferred tax expense)
2022
	(To record current tax expense)
	(To record deferred tax expense)