At the end of $2023,$ Payne Industries had a deferred tax asset account with a balance of $$110$ million attributable to a temporary book$-$

tax difference of $$440$ million in a liability for estimated expenses. At the end of $2024,$ the temporary difference is $$336$ million. Payne

has no other temporary differences. Taxable income for $2024$ is $$792$ million and the tax rate is $25\%.$

Payne has a valuation allowance of $$44$ million for the deferred tax asset at the beginning of $2024.$

Required:

Prepare the journal entry$($s$)$ to record Payne's income taxes for $2024,$ assuming it is more likely than not that the deferred tax

asset will be realized in full.

Prepare the journal entry$($s$)$ to record Payne's income taxes for $2024,$ assuming it is more likely than not that only one$-$fourth of

the deferred tax asset ultimately will be realized.

Complete this question by entering your answers in the tabs below.

Prepare the journal entry$($s$)$ to record Payne's income taxes for $2024,$ assuming it is more likely than not that the defred tax asset will

be realized in full.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

millions $($i$.$e$.,10,000,000$ should be entered as $10).$

Journal entry worksheetAt the end of $2023,$ Payne Industries had a deferred tax asset account with a balance of $$110$ million attributable to a temporary book$-$tax difference of $$440$ million in a liability for estimated expenses. At the end of $2024,$ the temporary difference is $$336$ million. Payne has no other temporary differences. Taxable income for $2024$ is $$792$ million and the tax rate is $25\%.$

Payne has a valuation allowance of $$44$ million for the deferred tax asset at the beginning of $2024.$

Required:

Prepare the journal entry$($s$)$ to record Payne$$s income taxes for $2024,$ assuming it is more likely than not that the deferred tax asset will be realized in full.

Prepare the journal entry$($s$)$ to record Payne$$s income taxes for $2024,$ assuming it is more likely than not that only one$-$fourth of the deferred tax asset ultimately will be realized.

REQUIRED $1$:

$1.$ Record the income taxes for $2024.$

$2.$ Record valuation allowance for the end of $2024.$

REQUIRED $2$:

$1.$ Record the income taxes for $2024.$

$2.$ Record valuation allowance for the end of $2024.$