Lafayette,Inc

question 43

Essay

Lafayette,Inc.completed its first year of operations with a pretax loss of $800,000.The tax return showed a net operating loss of $750,000,which the company will carryforward.The $50,000 book-tax difference results from a disallowed deduction for meals and entertainment.Management has determined that they should record a valuation allowance equal to the net deferred tax asset.Assuming a tax rate of 34%,prepare the journal entries to record the deferred tax provision and the valuation allowance.

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Definitions:

Brainwashed

A colloquial term for the process of coercively changing or manipulating someone's beliefs, attitudes, or behaviors, often in a negative context.

Perceived Risk

The potential negative outcome a consumer envisages before making a purchasing decision, influencing their behavior and choice.

Negative Antecedent State

A psychological or physical condition that exists before a particular behavior, leading to a reduction in consumer satisfaction or decision-making efficiency.

Temporal Uncertainty

The uncertainty associated with the timing of events, which can affect planning and decision-making processes.