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At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $9 million attributable to a temporary book-tax difference

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At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $9 million attributable to a temporary book-tax difference of $30 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $20 million Payne has no other temporary differences. Taxable income for 2018 is $100 million and the tax rate is 30% Payne has a valuation allowance of $1 million for the deferred tax asset at the beginning of 2018 Required: 1. Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized 2. Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (.e., 10,000,000 should be entered as 10).) View t he list Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. (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).) View transaction list Journal entry worksheet Record 2018 income taxes. Note: Enter debits before credits Event General Journal Debit Credit Pray 3 11 * Next Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. (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).) View transaction list Journal entry worksheet

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