MAC, Inc, Completed Its First Year of Operations with a Pretax

question 47

Essay

MAC, Inc., completed its first year of operations with a pretax loss of $300,000. The tax return showed a net operating loss of $500,000. The $200,000 book-tax difference results from excess tax depreciation over book depreciation. Management has determined that they should record a valuation allowance equal to the net deferred tax asset. Prepare the journal entries to record the deferred tax provision and the valuation allowance.

---

Definitions:

Job Satisfaction

The level of contentment or happiness an individual experiences regarding their job, including aspects such as work tasks, pay, and work environment.

Job Performance

The degree to which an employee executes their job duties and tasks effectively.

Happy Workers

Happy workers are employees who experience satisfaction and positive emotions towards their job, contributing to better performance and lower turnover rates.

Productive Workers

Individuals who efficiently and effectively complete tasks and contribute significantly to achieving organizational goals.