On January 1, 2020, SPACtacular Inc. acquired Druggy McBiotech Corp and recorded $150

of intangible assets. The tax code requires straight-line amortization of these intangible

assets over 15 years. The financial accounting standard requires testing these intangible

assets for impairment and recording an impairment if there is one.

On December 31, 2020, SPACtacular Inc. determined that the intangible assets were not

impaired. The company recorded pre-tax book income of $30. The corporate income tax

rate is 30%. The company did not have any other book-tax differences.

Record the journal entry for SPACtacular Inc's tax expense, taxes payable, and deferred tax

assets or liabilities, if any, for 2020. (Select all that apply.)

Cr. Taxes payable --$6

Dr. Tax Expense --$9

Cr. Deferred Tax Liabilities --$3

Dr. Tax Expense --$6

Cr. Taxes p$yable -- $9

Dr. Deferred Tax Assets --$3