Problem 17-62 (LO 17-3) (Algo) Saginaw Incorporated completed its first year of operations with a pretax loss of $530,000. The tax return showed a net operating loss of $639,000, which the company will carry forward. The $109,000 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 1 2 3 Record the deferred tax consequences for recognition of the current year NOL before considering the valuation allowance. Note: Enter debits before credits. Transaction General Journal Debit Credit < Prev 13 of 17 Next >