Capacitantes #2: El estudiante diferenciar cundo y cmo se usa una cuenta de valoracin para los activos diferidos. SELECT THE BEST ANSWER (Shows references and computations are required) 1. During its first year of operations, 2019, the Sears Block Company reported both a pretax financial and a taxable loss of $200,000. The income tax rate is 30% for the current and future years. Due to a sufficient backlog of sales orders, Sears Block did not establish a valuation allowance to reduce the $60,000 Deferred Tax Asset. However, early in 2020, one major customer, representing 60% of the 2019 year-end sales backlog, went bankrupt. Sears now believes that it is more likely than not that 70% of the deferred tax asset, will not realize. The entry to record the valuation allowance would be 42, 000 Income Tax Expense a. 42,000 Deferred Tax Asset b. Income Tax Benefit from Operating 42,000 Loss Carryforward Deferred Tax Asset 42,000 Income Tax Expense Allowance to Reduce Deferred 42, 000 . 42,000 Tax Asset to Realizable Value d. Allowance to Reduce Deferred Tax 42,000 Asset to Realizable Value Income Tax Expense 42,000 2. Examples of positive evidence cited by the FASB to indicate that a valuation allowance for the tax benefits from a deferred tax asset is not needed include all of the following, except a. existing contracts sales backlogs that will produce sufficient taxable income b. excess of fair market value over the tax basis that is sufficient enough to realize the deferred tax asset a history of using operating loss carryforwards a strong earnings history exclusive of the loss that created the deferred tax asset . d. 3. The valuation allowance account that is used in conjunction with deferred tax assets is a (an): Liability Component of shareholders' equity. a. b. Asset. . Contra asset. d. 4. The valuation allowance account that is used in conjunction with deferred taxes relates: a. Only to deferred tax liabilities. b. To both deferred tax assets and liabilities. Only to deferred tax assets. Only to income taxes receivable due to net operating loss carrybacks. d. c. Capacitantes #2: El estudiante diferenciar cundo y cmo se usa una cuenta de valoracin para los activos diferidos. SELECT THE BEST ANSWER (Shows references and computations are required) 1. During its first year of operations, 2019, the Sears Block Company reported both a pretax financial and a taxable loss of $200,000. The income tax rate is 30% for the current and future years. Due to a sufficient backlog of sales orders, Sears Block did not establish a valuation allowance to reduce the $60,000 Deferred Tax Asset. However, early in 2020, one major customer, representing 60% of the 2019 year-end sales backlog, went bankrupt. Sears now believes that it is more likely than not that 70% of the deferred tax asset, will not realize. The entry to record the valuation allowance would be 42, 000 Income Tax Expense a. 42,000 Deferred Tax Asset b. Income Tax Benefit from Operating 42,000 Loss Carryforward Deferred Tax Asset 42,000 Income Tax Expense Allowance to Reduce Deferred 42, 000 . 42,000 Tax Asset to Realizable Value d. Allowance to Reduce Deferred Tax 42,000 Asset to Realizable Value Income Tax Expense 42,000 2. Examples of positive evidence cited by the FASB to indicate that a valuation allowance for the tax benefits from a deferred tax asset is not needed include all of the following, except a. existing contracts sales backlogs that will produce sufficient taxable income b. excess of fair market value over the tax basis that is sufficient enough to realize the deferred tax asset a history of using operating loss carryforwards a strong earnings history exclusive of the loss that created the deferred tax asset . d. 3. The valuation allowance account that is used in conjunction with deferred tax assets is a (an): Liability Component of shareholders' equity. a. b. Asset. . Contra asset. d. 4. The valuation allowance account that is used in conjunction with deferred taxes relates: a. Only to deferred tax liabilities. b. To both deferred tax assets and liabilities. Only to deferred tax assets. Only to income taxes receivable due to net operating loss carrybacks. d. c