In 2018, Its First Year of Operations, Moulin & Company

question 135

Essay

In 2018, 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 entries to record the net deferred tax asset in 2018.

---

Definitions:

State's Vote

Refers to the voting process or decision made by a state, typically in the context of elections or legislative decisions.

Nonvoters

Individuals who are eligible to vote but choose not to participate in elections, often impacting the outcome and representation in democratic processes.

Low Education

A situation or condition where individuals have achieved less formal schooling than the average level expected or required for certain jobs or social positions.

Low Income

Earning level below the poverty line or median income levels, often qualifying for governmental or nonprofit assistance programs.