Ion Corporation reports an income tax expense/payable for book purposes of $200,000 and $250,000 for tax purposes.

Question:

Ion Corporation reports an income tax expense/payable for book purposes of $200,000 and $250,000 for tax purposes. According to Ion's management and financial auditors, Ion only will be able to use $30,000 of any deferred tax asset, with the balance expiring unused. Determine the amount of Ion's deferred tax asset and valuation allowance from this year's activities, and construct Ion's related journal entry for these items?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...