Ayayai Corp had a Deferred Tax Asset account with a balance of $ at the end of due to a single temporary difference of $ related to warranty liability accruals. At the end of this same temporary difference has increased to $ Taxable incume for is $ Thef
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Assume nown that Ayayai follows ASPE and that it is more likely than not that $ of the future tax asset will not be realized. prepare the journal entries to record income taxes for Ayayai uses a valuation allowance account. List all debit entries before credit entries. Credit account titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts
tableYearAccount Titles and Explanation,Debit,Credit
To record current tax expense
To record future tax benefit
To record future tax benefit
To bring the deferred tax assets accunt to its realizable value
