Decker Corporation experienced a loss in 2020. Additional information for Decker Corporation follows.

	2020
Taxable income (loss)	$(130,000)
Income tax rate	25%

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

a. Record income taxes for 2020 and 2021 assuming the following.

• For 2021, the company computed taxable income of $90,000 and recognized a deferred tax liability balance of $4,500 related to acquisition of depreciable assets in its year-end financial statements. These amounts were consistent with management's expectations.
• The income tax rate enacted 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.

Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order.

Date	Account Name	Dr.	Cr.
Dec. 31, 2020	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer

Date	Account Name	Dr.	Cr.
Dec. 31, 2021	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
	AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer

b. List the amounts that should be reported on the income statements and balance sheets for 2020 and 2021.
Note: Use a negative sign to indicate a loss.

Income statement	2020
Loss before tax	Answer
Income tax benefit	Answer
Net income (loss)	Answer

Note: Do not use negative signs with your answers.

Income statement	2021
Income before tax	Answer
Income tax expense	Answer
Net income (loss)	Answer

Balance Sheet, Dec. 31	2020	2021
Noncurrent assets
AnswerDeferred Tax AssetValuation Allowance for Deferred Tax Asset Income Tax Payable Liability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
Current liabilities
AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer
Noncurrent liabilities
AnswerDeferred Tax AssetValuation Allowance for Deferred Tax AssetIncome Tax PayableLiability for Unrecognized Tax BenefitsDeferred Tax LiabilityIncome Tax ExpenseN/A	Answer	Answer

Answer rating: 100% (QA)

a forord Income taxes Date Dec 31 2020 Dec 31 2021 fur 2020 and 20... View the full answer