Saginaw incorporated completed its first year of operations with a pretax los5 of 5677,500 . The tax return showed a net operating loss of $826,500, which the company will cary forward. The $149,000 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. Assume the current tax expense is zero. Note: If no entry is required for a tronsoction/event, select "No Journal Entry Required" in the first occount 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 joumal 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. Journal entry worksheet 3 Fecord the deferred tax consequences for recognition of the current year Not. betore considering the valuaton allowance. Notei Enter Eebuts before crodits Saginaw incorporated completed its first year of operations with a pretax loss of $677,500. The tax return showed a net operating loss of $826,500, which the company will carry forward. The $149,000 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. Assume the current tax expense is zero. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Required: o. 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 aliowance. Journal entry worksheet Record the deferred tax consequences arising from book tax depreciation difference. Note: Enter debits before credits. Saginaw incorporated completed its first year of operations with a pretax loss of $677,500. The tax return showed a net operating loss of $826,500, which the company will carry forward. The $149,000 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 Assume the current tax expense is zero. Note: If no entry is required for o transoction/event, select "No Journol Entry Required" in the first account fieid. Required: 0. 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 joumal 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. Journal entry worksheet
