Part 1: Htech Corp. started its operation in 2010 and has a $550,000 net operating loss when the tax rate is 35%.In 2011, the company has $680,000...

Part 1: Htech Corp. started its operation in 2010 and has a $550,000 net operating loss when the tax rate is 35%.In 2011, the company has $680,000 taxable income and the tax rate l.S""revised to 40% in early 2011.

INSTRUCTIONS:

(a) What are the entries in 2010 to record the tax loss carry-forward? (Assuming that it is more likely than not that half of the  loss carry-forward will not be realized.)

(b) What entries would be made to record income tax expenses in 2011?