Zhao Inc. began operations in 2019. At that time the tax rate was 30% and no changes to the rate are expected.

Zhao does not have any permanent or reversing differences in determining their taxable income from accounting income.

a) In 2019, Zhao incurred a net operating loss of $100,000. It was considered more likely than not that Zhao would earn sufficient revenues in the future to use the losses. Prepare the necessary journal entry(ies) to record income taxes for 2019. If no entry is required, write No Entry.

b) In 2020, Zhao had accounting income of $140,000. Prepare the necessary journal entry(ies) to record income taxes for 2020.