Question: John Holland Incorporated provides you with the following information. The company does not report any book tax differences and is subject to a 21% income

John Holland Incorporated provides you with the following information.


Year 2020 2021 Reported Income (Loss) ($350,000) $200,000


The company does not report any book tax differences and is subject to a 21% income tax rate. Holland is a US Corporate tax filer.


Required


a. Prepare the journal entry required to record the effect of the NOL in 2020.


b. Prepare the journal entry required to record the tax provision in 2021

Year 2020 2021 Reported Income (Loss) ($350,000) $200,000

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