Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year...

Transcribed Image Text:

Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 $ 310) 2017 $110 2018 50 2019 2020 $ (620) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability. Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. 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 Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 2B Prepare the appropriate journal entry to record Syer's 2020 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50). No. Transaction A 1 General Journal Receivable-Income tax refund Income tax expense TA Req 18 > Debit 130.20 Credit 130.20 Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 $310) 2017 $ 110 2018 50 2019 50 2020 $ (620) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability. Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. 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 Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Calculate Syer's 2020 net income(loss). Note: Net loss amounts should be indicated with a minus sign. Net loss Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 2017 $ 310) $ 110 2018 $0 2019 50 2020 $ (620) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability. Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. 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 Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Prepare the appropriate journal entry to record Syer's 2020 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No. Transaction General Journal A 1 Receivable-Income tax refund Deferred tax asset Valuation allowance Debit Credit 32 pints Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 $310) 2017 $110 2018 50 2019 50 2020 $ (620) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability. Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. 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 Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A 1 Req 18 Req 2A Req 28 Calculate Syer's 2020 net income(loss). Note: Net loss amounts should be indicated with a minus sign. < Req2A Red 20 > Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 $ 310) 2017 $110 2018 50 2019 2020 $ (620) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability. Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. 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 Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 2B Prepare the appropriate journal entry to record Syer's 2020 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50). No. Transaction A 1 General Journal Receivable-Income tax refund Income tax expense TA Req 18 > Debit 130.20 Credit 130.20 Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 $310) 2017 $ 110 2018 50 2019 50 2020 $ (620) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability. Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. 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 Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Calculate Syer's 2020 net income(loss). Note: Net loss amounts should be indicated with a minus sign. Net loss Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 2017 $ 310) $ 110 2018 $0 2019 50 2020 $ (620) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability. Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. 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 Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Prepare the appropriate journal entry to record Syer's 2020 income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No. Transaction General Journal A 1 Receivable-Income tax refund Deferred tax asset Valuation allowance Debit Credit 32 pints Syer Company reports net operating income (loss) for financial reporting and tax purposes in each year as follows ($ in millions): 2016 $310) 2017 $110 2018 50 2019 50 2020 $ (620) Syer's 2020 NOL is driven by an unfortunate obsolescence of its primary product. Given great uncertainty in Syer's future profitability. Syer's management does not believe it is more likely than not that it will be able to realize deferred tax assets in future years. Syer's federal tax rate decreased from 35% to 21% starting in 2018. Required: 1. 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 Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). 2. Now assume that Syer does account for its NOL under the CARES Act. Prepare the appropriate journal entry to record Syer's 2020 income taxes, and indicate Syer's 2020 net income(loss). Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A 1 Req 18 Req 2A Req 28 Calculate Syer's 2020 net income(loss). Note: Net loss amounts should be indicated with a minus sign. < Req2A Red 20 >