Suppose we have a $$5,000,000$ deferred tax asset. But, because we don$$t anticipate having much taxable

income for the foreseeable future $($our company isn$$t doing well$),$ we do not anticipate being able to use

$$3,000,000$ of the deferred tax asset to reduce our tax liability in the future.

Required:

Record the journal entry necessary to establish a valuation allowance related to the deferred tax asset.