Coldplay, Inc. (“the Company”) is in the process of adjustin…

Coldplay, Inc. (“the Company”) is in the process of adjusting and correcting its books at the end of 2025. The Company failed to accrue interest expense at the end of each of the last two years, as follows: December 31, 2024 $ 12,000 December 31, 2025 7,000 What journal entry, if any, should the Company record to correct the accounts, assuming the books are still open for 2025? Ignore income tax considerations.

At the end of 2024, Lewis and the News Company has a deferre…

At the end of 2024, Lewis and the News Company has a deferred tax asset account with a balance of $105,000 due to a single cumulative temporary difference. The Company recorded a valuation allowance of $15,400 related to this deferred tax asset. During 2025, the same temporary difference increased by $190,000. At the end of 2025, the Company determined that it is more likely than not that one-tenth of the related deferred tax asset will not be realized. The tax rate for all years is 20%. What net amount of deferred tax benefit will the Company record in 2025?