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Tahoe Thunder Inc reported a net operating loss (NOL) of $400,000 for financial reporting and tax purposes in 2019. They will carry forward that NOL

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Tahoe Thunder Inc reported a net operating loss (NOL) of $400,000 for financial reporting and tax purposes in 2019. They will carry forward that NOL to future years. Recall that the tax law indicates that NOL's can be carried forward indefinitely. The amount of the NOL deduction is limited to 80% of taxable income which is computed without regard to the NOL deduction. Tahoe Thunder generated $450,000 and $150,000 of income (for book & tax) in 2020 & 2021, respectively. Assume a 20% marginal tax rate for all years. What will be the accounting entry for Tahoe Thunder Inc. in 2020 for income taxes? Debit Income Tax Expense $90,000, Credit Income Tax Payable $90,000; Debit Income Tax Payable $72,000, Credit DTA $72,000 Debit Income Tax Expense $90,000, Credit Income Tax Payable $90,000; Debit Income Tax Payable $80,000, Credit DTA $80,000 O Debit Income Tax Expense $90,000, Credit Income Tax Payable $90,000 Debit Income Tax Expense $90,000, Credit Income Tax Payable $90,000; Debit Income Tax Payable $30,000, Credit RTA $300

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