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At the end of the prior year, doubtful inc had a deferred tax asset of...

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Accounting

At the end of the prior year, doubtful inc had a deferred tax asset of $10,000,000 attributable to its only timing difference, a temporary difference of $40,000,000 in a liability for estimated expense. at that time, a valuation of $3,100,000 was established. at the end of the current year, the temporary difference is $35,000,000 and doubtful determines that the balance in the valuation account should now be $5,000,000. taxable income is $14,000,000 and the tax rate is 25% for all years.

Prepare journal entries for Doubtful income tax expense for the current year.

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