At the end of 2023, Payne Industries had a deferred tax asset account with a...
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Accounting
At the end of 2023, Payne Industries had a deferred tax asset account with a balance of $75 million attributable to a temporary book-tax difference of $300 million in a liability for estimated expenses. At the end of 2024, the temporary difference is $224 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2024 is $540 million and the tax rate is 25%.
Required:
Prepare the journal entry(s) to record Paynes income taxes for 2024, assuming it is more likely than not that the deferred tax asset will be realized in full.
Prepare the journal entry(s) to record Paynes income taxes for 2024, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.
Record 2024 income taxes. Note: Enter debits before credits. Record valuation allowance for the end of 2024 . Note: Enter debits before credits. Record 2024 income taxes. Vote: Enter debits before credits. Record valuation allowance for the end of 2024 . Note: Enter debits before credits
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Record 2024 income taxes. Note: Enter debits before credits. Record valuation allowance for the end of 2024 . Note: Enter debits before credits. Record 2024 income taxes. Vote: Enter debits before credits. Record valuation allowance for the end of 2024 . Note: Enter debits before credits
