enefit 0,000
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 24CE
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Transcribed Image Text:Cassels Corp. (a C-Corporation) generated a Net Operating Loss (NOL) in 2021 of ($80,000). Cassels
Corp. should record the following journal entry:
a. DR Current Income Tax Expense $80,000, CR Deferred Tax Asset $80,000
b. DR Current Income Tax Benefit $16,800, CR Deferred Tax Asset $16,800
c. DR Deferred Tax Asset $80,000, CR Current Income Tax Expense $80,000
d. DR Deferred Tax Asset $16,800, CR Current Income Tax Benefit $16,800
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