× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
sorandomkay13 sorandomkay13
wrote...
Posts: 321
Rep: 15 0
5 years ago
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.
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
Authors:
Read 31 times
2 Replies

Related Topics

Replies
wrote...
#1
5 years ago
 
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.
sorandomkay13 Author
wrote...
#2
5 years ago
Smart ... Thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1305 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 607
  
 1144
  
 252
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Who will win the 2024 president election?