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Business, 26.07.2019 01:30 josh200508
Saginaw inc. completed its first year of operations with a pretax loss of $500,000. the tax return showed a net operating loss of $600,000, which the company will carry forward. the $100,000 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.
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Saginaw inc. completed its first year of operations with a pretax loss of $500,000. the tax return s...
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