ALB Company experienced a loss in 2020.

2020

Income Tax Rate 25%

Taxable income (loss) ($65,000)

No temporary differences from 2018 to 2020 other than any related to a net operating loss carryforward.

REQUIRED: Record income taxes for 2020 and 2021

- For 2021, the company computed taxable income of $45,000 and recognized a deferred tax liability balance of $2,250 related to the acquisition of depreciable assets in its year-end financial statements. These amounts were consistent with management’s expectations

- The income tax rate in 2020 and effective for 2021 and thereafter is 30%

- Management estimates the valuation allowance on the deferred tax asset related to its 2020 NOL to be zero

Answer rating: 100% (QA)

Date General ledger Debit Credit Calculations 2020 Deferred tax assets AcDr 19500 6500030 To In... View the full answer