(b) Assuming that it is more likely than not that $13,600 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2020 to record the valuation account. (Credit account titles are automatically indented when 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.)
Teal Corp. has a
(a) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that the deferred tax asset will be realized. (Credit account titles are automatically indented when 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.)
|
Account Titles and Explanation
|
Debit
|
Credit
|
| Deferred Tax Asset |
13,600
|
|
|
Income Tax Expense
|
134,200
|
|
|
Income Tax Payable
|
|
147,800
|
(b) Assuming that it is more likely than not that $13,600 of the deferred tax asset will not be realized, prepare the
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