1question 3 part

Q#3: USE THE FOLLOWING INFORMATION FOR THE NEXT THREE QUESTIONS: Lacy Corporation has the following information: Taxable Loss for 20X4 = $(58,900) Tax rate = 18% Tax Paid = zero Lacy Corporation has filed for bankruptcy and has substantial doubt as to whether they will be able to generate positive taxable income in 20x5 and future years. The journal entries required at the 2024 balance sheet date are: A. Deferred Tax Asset (debit) $10,602 Income Tax Expense (credit) $10,602 AND $10,602 Income Tax Expense (debit) Allowance to Reduce DTA to Expected Realizable Value (credit) $10,602 B. Deferred Tax Asset (debit) $58,900 Income Tax Expense (credit) $58,900 AND $58,900 $58,900 Income Tax Expense (debit) Allowance to Reduce DTA to Expected Realizable Value (credit) C. Income Tax Expense (debit) $48,298 Deferred Tax Liability (credit) $48,298 AND $48,298 Deferred Tax Asset (debit) Income Taxes Payable (credit) D. No journal entry required $48,298 SELECT THE CORRECT LETTER CHOICE. Q#4: The journal entry/entries required above has what impact on retained earnings? Input an amount or the number zero if applicable. Q#5: The journal entry/entries required above has what impact on the asset side (ONLY) of the balance sheet? Input an amount or the number zero if applicable