The date is January 10, 2023, and Maryton Hotels' CFO George Smith is looking with dismay at his company's financial performance during 2022. Already facing stiff competition from other hotel chains as well as Airbnb, Maryton had run an operating loss in 2020 and 2021 and had responded by engaging in a broad effort to refresh hotel dcor and update wi-fi and other infrastructure. That effort concluded in late 2021 and seemed to be showing success in early 2022. However, a variant of the COVID-19 virus reached pandemic status in mid-2022, and business and leisure travel fell off considerably. Occupancy rates at Maryton properties plunged, producing a $10 million pre-tax net operating loss for 2022. Maryton's CEO has asked that George "work some of his accounting magic" to "put a positive spin on things" and minimize Maryton's net loss, hoping to calm concerns being voiced by investors and lenders. Required: 1. Assume Maryton has a 25% tax rate. Prepare a journal entry that records the tax effects of its NOL, assuming that no valuation allowance is necessary and that the CARES Act does not apply. Calculate Maryton's net income or net loss under that scenario. 2. Repeat requirement 1, but now assume that a valuation allowance is necessary that completely offsets any new deferred tax asset that Maryton is adding as a result of its NOL carryforward. 3. Consider your answers to requirements 1 and 2. What "accounting magic" might Smith work to minimize Maryton's net loss? 4. Does Smith face an ethical dilemma? If Smith chooses to "put a positive spin on things" and minimize Maryton's net loss, who could benefit, and who could be injured