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Tyson Corporation reported pretax income from operations in Year 1 of 92,000 (the first year of operations). In Year 2, the corporation experienced a $96,000
Tyson Corporation reported pretax income from operations in Year 1 of 92,000 (the first year of operations). In Year 2, the corporation experienced a $96,000 NOL (pretax loss from operations). Management is confident the company will have taxable income in excess of $120,000 in Year 3. Assume an income tax rate of 25% in Year 1 and thereafter. Tyson has no other temporary differences.
Required a. Provide the Year 1 and Year 2 income tax entries that Tyson should make.
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