Saginaw Incorporated completed its first year of operations with a pretax loss of $ 5 0 0 , 0 0 0 The tax return showed a net operating loss of $ 6 0 0 , 0 0 0 , which the company will carry forward The $ 1 0 0 , 0 0 0 book tax difference results from an increase in taxable temporary differences ( i e , 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 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 book tax difference Prepare the journal entry to record the deferred tax consequences of the valuation allowance

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Saginaw Incorporated completed its first year of operations with a pretax loss of $ 5 0 0 , 0 0 0   The tax return showed a net operating loss of $ 6 0 0 , 0 0 0 , which the company will carry forward  The $ 1 0 0 , 0 0 0 book tax difference results from an increase in taxable temporary differences ( i   e   , 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  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 book   tax difference  Prepare the journal entry to record the deferred tax consequences of the valuation allowance

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Saginaw Incorporated completed its first year of operations with a pretax loss of $ 5 0 0 , 0 0 0 . The tax return

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