During 2019, its first year of operations, bento steel corporation reported a net operating loss of $500,000 for financial reporting and tax purposes. bento carryforward the nol. assuming 2020 pretax accounting income and taxable income is $100,000. the enacted tax rate is 25% for both years. the amount of net income reported in 2020 income statement would be:

The amount of net income reported in 2020 income statement would be $75,000.

Explanation:

Pretax accounting income for 2020 = $100,000

Income tax expense for 2020 = Current tax + Reversal of Deferred tax assets

= ($100,000 - $100,000)*25% + ($100,000*25%)

= $25,000

Amount of net income reported in 2020 income statement = Pretax accounting income - Income tax expense

= $100,000 - $25,000

= $75,000

Therefore, The amount of net income reported in 2020 income statement would be $75,000.

answer; post closing trial balance;