Reference no: EM132509951

Question - In 2018, 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 2 necessary journal entries to record the net deferred tax asset in 2018.