In 2018 Tetra Corp. generated $583,000 in revenues and incurs $276,000 in expenses. There are no permanent or temporary book-tax differences. Tetra has a deferred tax asset of $61,250 related to a net operating loss of $175,000 from the previous year.
Assuming a 35% tax rate, prepare the tax related journal entry for the current year.

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The Answer of In 2018 Tetra Corp. generated $583,000 in revenues and incurs $276,000 in expenses. There are no permanent or temporary book-tax differences. Tetra has a deferred tax asset of $61,250 related to a net operating loss of $175,000 from the previous year.
Assuming a 35% tax rate, prepare the tax related journal entry for the current year.