Zellow.com reports pretax financial income of $800, $880, and $700 for 2019, 2020, and 2021. Additional information is as follows: An installment sale of $640 was made in 2019. The company collected $290 on this sale in 2019, and expects to collect $180 in 2020 and the remaining $170 in 2021. Zellow accrues a loss and a related liability of $320 in 2019 for financial reporting purpose because of pending litigation. This amount is not deductible for tax purposes until the period the liability is paid, which is expected to be $200 in 2020 and $120 in 2021. Premium paid for non-deductible life insurance carried by the company on key officers was $120 in 2019. Interest revenue received on nontaxable municipal bonds in 2020 was $100. Fines received in violation of law amounted to $80 in 2021. The enacted tax rates for 2019, 2020, and 2021 are 35%, 25%, and 20%, respectively. There are no deferred taxes at the beginning of 2019. REQUIRED: FILL IN THE BLANKS.

• Taxable income for 2019 is ____ , and for 2021 is___
• At the end of 2019, DTA has a balance of _____ , DTL has a balance of _______
• The Income Tax Expense for the year 2020 is _______
• Assume in 2020, Congress raised future tax rate by 10% to be 30% starting in 2021. Thus, the 2020 journal entry to record the change in this tax law includes the following:

(Dr. or Cr.?) DTA for _______---; (Dr. or Cr.?) ITEXP for ___________

• True or false? Future taxable amount leads to a DTA ______
• True or false? Permanent differences eventually go down to zero _____________-

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