BAM Inc. had a pretax loss of $300,000 in its first year of operations which resulted in a net operating loss of $400,000 for tax purposes due to $100,000 of excess tax depreciation over book depreciation. Management determined a valuation allowance equal to the net deferred tax asset should be recorded since the company had a loss, so journal entries need to be made to record the deferred tax provision at a 34% tax rate and the valuation allowance.