Help Save & Exit Submit Problem 6-67 (LO 6-4) Cadillac Square Corporation determined that $1,000,000 of its research tax credit on its current-year tax return was uncertain Management made the following assessment of the company's potential tax benefit from the deduction and its probability of occurring. Potential Estimated Benefit (000) $1,000,000 $ 750,000 $ 500,000 Individual Probability of Occurring (%) Cumulative Probability of Occurring (%) 40 40 25 20 85 0 15 100 Management determined that there was only a 50/50 chance any portion of the $1,000,000 research tax credit would be sustained on audit? Tax benefit amount recognized require mormation Problem 6-62 (LO 6-3) The following information applies to the questions displayed below! Saginaw Inc, completed its first year of operations with a pretax loss of $500,000. The tax return showed a net operating loss of $600,000, which the company will carry forward. The $100,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Problem 6-62 Part b b. Prepare the journal entry to record the deferred tax consequences of the depreciation book-tax difference View transaction list Journal entry worksheet Record the deferred tax consequences arising from book-tax depreciation difference. Note: Enter debits before credits Transaction General Joumal Debit Credit CON Clear entry View general Journal Problem 6-62 (LO 6-3) The following information applies to the questions displayed below.) Saginaw Inc, completed its first year of operations with a pretax loss of $500.000. The tax return showed a net operating loss of $600,000, which the company will carry forward. The $100,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Problem 6-62 Part C. Prepare the journal entry to record the deferred tax consequences of the valuation allowance View transaction list Journal entry worksheet Record the valuation allowance. Note: Enter debits before credits Transaction General Journal Debit Credit Help Save & Exit Submit Problem 6-67 (LO 6-4) Cadillac Square Corporation determined that $1,000,000 of its research tax credit on its current-year tax return was uncertain Management made the following assessment of the company's potential tax benefit from the deduction and its probability of occurring. Potential Estimated Benefit (000) $1,000,000 $ 750,000 $ 500,000 Individual Probability of Occurring (%) Cumulative Probability of Occurring (%) 40 40 25 20 85 0 15 100 Management determined that there was only a 50/50 chance any portion of the $1,000,000 research tax credit would be sustained on audit? Tax benefit amount recognized require mormation Problem 6-62 (LO 6-3) The following information applies to the questions displayed below! Saginaw Inc, completed its first year of operations with a pretax loss of $500,000. The tax return showed a net operating loss of $600,000, which the company will carry forward. The $100,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Problem 6-62 Part b b. Prepare the journal entry to record the deferred tax consequences of the depreciation book-tax difference View transaction list Journal entry worksheet Record the deferred tax consequences arising from book-tax depreciation difference. Note: Enter debits before credits Transaction General Joumal Debit Credit CON Clear entry View general Journal Problem 6-62 (LO 6-3) The following information applies to the questions displayed below.) Saginaw Inc, completed its first year of operations with a pretax loss of $500.000. The tax return showed a net operating loss of $600,000, which the company will carry forward. The $100,000 book-tax difference results from excess tax depreciation over book depreciation Management has determined that it should record a valuation allowance equal to the net deferred tax asset Assuming the current tax expense is zero, prepare the journal entries to record the deferred tax provision and the valuation allowance. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Problem 6-62 Part C. Prepare the journal entry to record the deferred tax consequences of the valuation allowance View transaction list Journal entry worksheet Record the valuation allowance. Note: Enter debits before credits Transaction General Journal Debit Credit