5 Saginaw Incorporated completed its first year of operations with a pretax loss of $627.500. The tax return showed a net operating loss of $756 500, which the company will carry forward. The $129.000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Required: a. Prepare the journal entry to record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance b. Prepare the journal entry to record the deferred to consequences of the depreciation book tax difference c. Prepare the journal entry to record the deferred to consequences of the valuation allowance Answer is not complete. Debit No Credit 1 a General Journal No Joumal Entry Required Deferred tax asset Deferred tax benefit No Journal Entry Required No Journal Entry Required No Journal Entry Required Saginaw Incorporated completed its first year of operations with a pretax loss of $627,500. The tax return showed a net operating loss of $756,500, which the company will carry forward. The $129,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Required: a. Prepare the journal entry to record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance. b. Prepare the journal entry to record the deferred tax consequences of the depreciation book-tax difference, c. Prepare the journal entry to record the deferred tax consequences of the valuation allowance View transaction list Journal entry worksheet 2 3 Record the deferred tax consequences arising from book-tax depreciation difference. Note: Enter debits before credits Transaction General Joumal Debit Credit Record entry Clear entry View general journal Saginaw Incorporated completed its first year of operations with a pretax loss of $627,500 The tax return showed a net operating loss of $756,500, which the company will carry forward. The $129,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tox asset Assuming the current tax expense is zero prepare the journal entries to record the deferred tax provision and the valuation allowance (if no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) Required: . Prepare the journal entry to record the deferred tax consequences for recognition of the current year Nol before considering the valuation allowance b. Prepare the journal entry to record the deferred tax consequences of the depreciation book to difference c. Prepare the journal entry to record the deferred tax consequences of the valuation allowance. View transaction list Journal entry worksheet 2 3 Record the valuation allowance. Note: Enter debits before credits Debit General Journal Transaction Credit c Record entry Clear entry View general journal