In 2015,its First Year of Operations,Moulin & Company Experienced a $326,000

question 106

Essay

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.

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Definitions:

Market Power

The power of a firm to control the market price of its product. A monopoly has the greatest degree of market power.

Consumer Data

Information relating to individuals who purchase or show interest in products and services, including personal details, buying habits, and preferences.

Antitrust Violation

Instances where businesses or individuals engage in practices that restrict competition, violate established antitrust laws, and harm consumers or the economy.

Restraints Of Trade

Legal restrictions placed on business practices that can limit competition or manipulate markets.