Prepare the necessary journal entry

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Question - At December 31, 2020, Novak Corporation has a deferred tax asset of $337,200. After a careful review of all available evidence, it is determined that it is more likely than not that $72,800 of this deferred tax asset will not be realized.

Prepare the necessary journal entry assuming that Novak does not use a valuation allowance account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare the necessary journal entry assuming that Novak does use a valuation allowance account.

Reference no: EM132875245

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