Question: Assume the same information as in Brief Exercise 18-27 except that the Deferred Tax Asset account had a December 31, 2019, balance of ($ 1,800).

Assume the same information as in Brief Exercise 18-27 except that the Deferred Tax Asset account had a December 31, 2019, balance of $\$ 1,800$. Record the income tax journal entry on December 31, 2020.

Exercise 18-27

Rangee Rover Inc. recorded pretax GAAP income of $\$ 89,000$ in 2020. The GAAP basis of accounts receivable (net) is $\$ 6,000$ less than the tax basis of accounts receivable. Assuming a tax rate of $25 \%$, record the income tax journal entry on December 31, 2020. Assume zero beginning balances in deferred tax accounts.

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