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Title: In 2015, its first year of operations, Moulin & Company experienced a $326,000 net operating loss ... Post by: sorandomkay13 on Jul 23, 2018 In 2015, its first year of operations, Moulin & Company experienced a $326,000 net operating loss and recorded a deferred tax asset of $117,360. Moulin decides that it is more likely than not that it will only be able to generate $250,000 of taxable income during the carryforward period. As a result, without generating additional future taxable income it will not be able to fully realize the NOL carryforward benefit.
Prepare the necessary journal entry to record the net deferred tax asset in 2015. Title: In 2015, its first year of operations, Moulin & Company experienced a $326,000 net operating loss ... Post by: 7.prime7105 on Jul 23, 2018 Deferred Tax Asset117,360 Income Tax Benefit117,360 Income Tax Benefit27,360 Valuation Allowance27,360* *Compute the implicit tax rate: 117,360 / 326,000 = 36% and multiply this by the difference between the NOL and the amount that is expected to be used during the carryforward period times the tax rate (326,000 - 250,000) 36% = $27,360. Title: In 2015, its first year of operations, Moulin & Company experienced a $326,000 net operating loss ... Post by: sorandomkay13 on Jul 23, 2018 Smart ... Thanks!
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