At December 31, 2020,NovakCorporation has a deferred tax asset of $337,200. After a careful review of all available evidence, it is determined that it is more likely than not that $72,800of this deferred tax asset will not be realized.

Prepare the necessary journal entry assuming thatNovakdoes not use a valuation allowance account.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare the necessary journal entry assuming thatNovakdoes use a valuation allowance account.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)