The Intel Corporation has pre$-$tax income of $$80,000$ in $2020$ and $$110,000$ in $2021.$ Selected portions from Intel$$s last three years balance sheets are shown below. Other than items shown on the balance sheet, there are no other items causing temporary differences. Assume the government operates on a strictly cash basis for tax purposes and that the enacted tax rate is $40\%.$

Answer the following questions:

$1.$ Write the $20210$and $2021$ net journal entries related to the non$-$deferred tax accounts given on the balance sheet.

$2.$ Determine whether the balance sheet items indicate temporary differences and, if so$,$ whether they create DTA$$s or DTL$$s$.$

$3.$ Determine Intel$$s $2020$ and $2021$ taxable income and current tax $($taxes payable$).$

$4.$ Fill out a Deferred Tax Worksheet for Intel in $2020$ and $2021.$ Bonus: See if you can determine where the $2019$ DTA and DTL balances came from.

$5.$ Write Intel$$s $2020$ and $2021$ tax entries.

$6.$ Show what $2020$ and $2021$ pretax income, tax expense and net income will look like on the income statement. Balance Sheet: $202120202019$

Assets:

Installment sale receivable $6,00012,00018,000$

Prepaid insurance $5,0003,0008,000$

DTA $??5,700$

Liabilities

Unearned subscription revenue $6,50011,0007,000$

Warranty liablity $10,0004,00012,000$

DTL $??7,800$