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Saginaw Incorporated completed its first year of operations with a pretax loss of $ 5 3 7 , 5 0 0 . The tax return
Saginaw Incorporated completed its first year of operations with a pretax loss of $ The tax return showed a net operating loss of $ which the company will carry forward. The $ booktax difference results from an increase in taxable temporary differences ie excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assume the current tax expense is zero.
Note: If no entry is required for a transactionevent 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 booktax difference.
c Prepare the journal entry to record the deferred tax consequences of the valuation allowance.
tableNoTransaction,General Journal,Debit,CreditaDeferred tax asset,,Deferred tax benefit,,bDeferred tax expense,,Deferred tax liability,,,Saginaw Incorporated completed its first year of operations with a pretax loss of $ The tax return showed a net operating loss of $ which the company will carry forward. The $ booktax difference results from an increase in taxable temporary differences ie excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset. Assume the current tax expense is zero.
Note: If no entry is required for a transactionevent 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.
Prepare the journal entry to record the deferred tax consequences of the depreciation booktax difference.
Prepare the journal entry to record the deferred
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