Blossom Corporation has a deferred tax asset at December 31, 2022 of $ 250000 due to the recognition of potential tax benefits of an operating loss carryforward. The enacted tax rates are as follows: 30% for 2019–2021; 25% for 2022; and 20% for 2023 and thereafter. Assuming that management expects that only 50% of the related benefits will actually be realized, a valuation account should be established in the amount of:
Blossom Corporation has a deferred tax asset at December 31, 2022 of $ 250000 due to the recognition of potential tax benefits of an operating loss carryforward. The enacted tax rates are as follows: 30% for 2019–2021; 25% for 2022; and 20% for 2023 and thereafter. Assuming that management expects that only 50% of the related benefits will actually be realized, a valuation account should be established in the amount of:
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 60P
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