Problem 16-14 (Static) COVID-19; Net operating loss; financial statement effects [LO16-7] Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows: 2016 2017 2018 2019 2020 $ 300 $ 100 $ 0 $0 $ (600) Syers 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syers future profitability, Syers management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syers federal tax rate decreased from 35% to 21% starting in 2018.

Required:

Assume that Syer does not account for its NOL under the CARES Act. Instead, Syer accounts for its NOL using the general requirement that NOLs be carried forward. Prepare the appropriate journal entry to record Syers 2020 income taxes, and indicate Syers 2020 net income(loss).

Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syers 2020 income taxes, and indicate Syers 2020 net income(loss).