Allied Corp. has a deferred tax asset balance of $$50,000$ on December $31$ due to a temporary difference related to a warranty expense accrual that is not deductible for tax purposes. The

deferred tax asset balance has increased $$10,000$ over the prior year ending balance of $$40,000.$ Taxable income for the year is $$210,000$ and the tax rate is $25\%.$ There is a deferred tax

asset valuation allowance credit balance of $$12,000$ on January $1.$

Required

a$.$ Record the income tax journal entries on December $31$ to $(1)$ adjust the deferred tax asset account and $(2)$ adjust the deferred tax asset valuation allowance, assuming that it is more

likely than not that the deferred tax asset ending balance of $$50,000$ will be realized.

Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$$debit$"$ and $"$N$/$A$$credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$)$

b$.$ Record the income tax journal entries on December $31$ to $(1)$ adjust the deferred tax asset account and $(2)$ adjust the deferred tax asset valuation allowance, assuming that it is more

likely than not that only $60\%$ of the deferred tax asset ending balance of $$50,000$ will be realized.

Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$$debit$"$ and $"$N$/$A$$credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$)$b$.$ Record the income tax journal entries on December $31$ to $(1)$ adjust the deferred tax asset account and $(2)$ adjust the deferred tax asset valuation allowance, assuming that it is more

likely than not that only $60\%$ of the deferred tax asset ending balance of $$50,000$ will be realized.

Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$$debit$"$ and $"$N$/$A$$credit$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$)$