Alta Optics recorded $518,000 in sales revenue in 2022. The company is subject to a 35% tax rate. Alta recorded a deferred tax asset of $43,400 in 2022 because of a $124,000 basis difference in warranty liabilities ($124,000 x 35%). Based on its assessment of all positive and negative evidence associated with this deferred tax asset, management has assessed that it is more likely than not that it will not realize 40% of the deferred tax asset. Ignore cost of goods sold. What are the necessary journal entries to record the deferred tax asset and valuation allowance? Prepare a partial 2022 income statement and balance sheet for Alta Optics and compare it with the financial statements that do not include a valuation allowance. What is the effective tax rate in the two examples? Provide the footnote reconciliation of the federal statutory income tax rate to the effective tax rate in both dollars and percentages, incorporating the use of the valuation allowance. (Assume all sales were made on account.) What are the necessary journal entries to record the deferred tax asset and valuation allowance? (Record debits first, then credits Exclude explanations from any journal entries. Assume all sales were made on account.) First, record the journal entry for sales revenue in 2022 Account 2022 L Next Alta Optics recorded $518,000 in sales revenue in 2022 The company is subject to a 35% tax rate Alta recorded a defined tax aset of $43,400 in 57, because of a $124,000 basis diference in any 35%) Based on its assessment of all positive and negative evidence associated with this deferred tax asset management has assessed that is mcwly than not that will not at 42% of the deed a p of goods sold. What are the necessary journal entries to record the deferred tax asset and valuation allowance? Prepare a partial 2022 income states and balance sheet for Ata Oytics and compas with Be fra statements that do not include a valuation allowance What is the effective tax rate in the hero examples? Provide the footnate reconciliation of the local statutory income tas rals to the effective tart percentages, incorporating the use of the valuation allowance (Assume all sales were made on account.) Now, record the journal entry for warranty liability at the end of the year Account December 31, 2022 Next, record the journal entry for income tax expense at the end of the year Na Alta Optics recorded $518,000 in sales revenue in 2022. The company is subject to a 35% tax rate. Alta recorded a deferred tax asset of $43,400 in 32. because of $124,000 bonis d 35%) Based on its assessment of all positive and negative evidence associated with this deferred tax asset, management has assessed that it is mers sy than not that it will not reakco 40% sil t of goods sold. What are the necessary journal entries to record the deferred tax asset and valuation allowance? Prepare a partial 2022 income states on and balance sheet for Alta Optics and comp statements that do not include a valuation allowance. What is the effective tax rate in the two examples? Provide the footnote reconciliation of the fecoral statutory income tax rate to the effects tem percentages, incorporating the use of the valuation allowance. (Assume all sales were made on account.) Now, record the journal entry for valuation allowance at the end of the year. Account December 31, 2022 C Dranara a nartial 2022 innoma statamant and halanna chaat for Alts Ontire and rommarath the financial afstaments that stude Alta Optics recorded $518,000 in sales revenue in 2022 The company is subject to a 35% tax rate Ata recorded a delend to 35%) Based on its assessment of all positive and negative evidence associated with this deferred tax anset, manag of goods sold. What are the necessary journal entries to record the deferred tax aset and valuation allowance? P statements that do not include a valuation allowance What is the effective tax rate in the two examples? Provide t percentages, incorporating the use of the valuation allowance (Assume all sales were made 4.000 din Prepare a partial 2022 income statement and balance sheet for Alta Optics and compare it with the financial statements that do not include First, prepare a partial 2022 income statement with and without valuation allowance Partial Income Statement Sales Revenue Warranty Expense Without Valuation Allowance) With Valuation Allowance deed as a ghee ca Next possible This question: 10 points) possib Alta Optics recorded $518,000 in sales revenue in 2022 The company is subject to a 35% tax rate. Ata recorded a deferred tax asset of $43.400 in 712 because of a $124,000 basis diferen 35%) Based on its assessment of all positive and negative evidence associated with this deferred tax asset, management has assessed that it is merely than not that I will not reakce 40% of goods sold. What are the necessary journal entries to record the deferred tax asset and valuation allowance? Prepare a partial 2022 income studeren and balance sheet for Alta Optics and statements that do not include a valuation allowance. What is the effective tax rate in the two examples? Provide the footnote reconciliation of the feceral statutory income tax rate to the affect percentages, incorporating the use of the valuation allowance (Assume all sales were made on account.) Partial Income Statement Sales Revenue Warranty Expense Income before Income Taxes Income Tax Expense Net Income Without Valuation Allowance With Valuation Allowance S Alta Optics recorded $518,000 in sales revenue in 2022 The company is subject to a 35% tax rate Ala recorded a defened as asset of $43.400 w 35%) Based on its assessment of all positive and negative evidence associated with this defened tax aset, management has asessed t of goods sold What are the necessary journal entries to record the deferred tax annet and valuation allowance? Prepare a partial 2922 com statements that do not include a valuation allowance What is the effective tax rate in the two examples? Provide the footnote reconciliation of t percentages, incorporating the use of the valuation allowance (Assume all sales were made on account) The effective tax rate before recording a valuation allowance is valuation allowance is The effective tax rate after recording the balance sheet fa3124 000 bas denes in a Aka Optics and s 124.000 des and Provide the footnote reconciliation of the federal statutory income tax rate to the effective tax rate in both dollars and percentages incorporating the v decimal place, XX) Description Income Tax at the statutory tax rate Dollars Percentage on alovance und your percentag Increase in the valuation allowance Tax at the effective rate Alta Optics recorded $518,000 in sales revenue in 2022. The company is subject to a 35% tax rate. Alta recorded a deferred tax asset of $43,400 in 2022 because of a $124,000 basis difference in warranty liabilities ($124,000 x 35 %). Based on its assessment of all positive and negative evidence associated with this deferred tax asset management has assessed that it is more likely than not that it will not realize 40% of the deferred tax asset. Ignore cost of goods sold. What are the necessary journal entries to record the deferred tax asset and valuation allowance? Prepare a partial 2022 income statement and balance sheet for Alta Optics and compare it with the financial statements that do not include a valuation allowance. What is the effective tax rate in the two examples? Provide the footnote reconciliation of the federal statutory income tax rate to the effective tax rate in both dollars and percentages, incorporating the use of the valuation allowance (Assume all sales were made on account.) What are the necessary journal entries to record the deferred tax asset and valuation allowance? (Record debits first, then credits Exclude explanations from any journal entries Assume all sales were made on account) First record the journal entry for sales revenue in 2022. Account Sales Revenue 2022 518000 Next possible Alta Optics recorded $518,000 in sales revenue in 2022. The company is subject to a 35% tax rate. Alta recorded a deferred tax asset of $43,400 in 2022 because of a $124,000 basis difference in warranty liabilities ($124,000 x 35%). Based on its assessment of all positive and negative evidence associated with this deferred tax asset, management has assessed that it is more likely than not that it will not realize 40% of the deferred tax asset. Ignore cost of goods sold. What are the necessary journal entries to record the deferred tax asset and valuation allowance? Prepare a partial 2022 income statement and balance sheet for Alta Optics and compare it with the financial statements that do not include a valuation allowance. What is the effective tax rate in the two examples? Provide the footnote reconciliation of the federal statutory income tax rate to the effective tax rate in both dollars and percentages Incorporating the use of the valuation allowance (Assume all sales were made on account.) Now record the journal entry for warranty liability at the end of the year Account Deferred Tex Asset Deferred Tax Liability December 31, 2022 43400 43400 Next, record the journal entry for income tax expense at the end of the year. Account Income Tax Expense Income Taxes Payable December 31, 2022 Now, record the journal entry for valuation allowance at the end of the year. Prepare a partial 2022 income statement and balance sheet for Alta Optics and compare it with the financial statements that do not include a valuation alowance First, prepare a partial 2022 income statement with and without valuation allowance Partial Income Statement Sales Revenue Warranty Expense Income before Income Taxes Without Valuation Allowance With Valuation Allowance Alta Optics recorded $518,000 in sales revenue in 2022. The company is subject to a 35% tax rate. Alta recorded a deferred tax asset of $43,400 in 202 becaum 35%) Based on its assessment of all positive and negative evidence associated with this deferred tax asset, management has assessed that it is more lely tha of goods sold. What are the necessary journal entries to record the deferred tax asset and valuation allowance? Prepare a partial 2022 income statemen and ba statements that do not include a valuation allowance. What is the effive tax rate in the two examples? Provide the footnote reconciliation of the fecioral statutor percentages, incorporating the use of the valuation allowance. (As all sales were made on account.) The effective tax rate before recording a valuation allowance is % The effective tax rate after recording the valuation allowance is % Provide the footnote reconciliation of the federal statutory income tax rate to the effective tax rate in both dollars and percentages, incorporating the use of the va decimal place, XX) Description Income Tax at the statutory tax rate Increase in the valuation allowance Tax at the effective rate Dollars Percentage