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At the end of 2020 , Payne Industries had a deferred tax asset account with a balance of $85 million attributable to a temporary book.
At the end of 2020 , Payne Industries had a deferred tax asset account with a balance of $85 million attributable to a temporary book. tax difference of $340 mallion in a liability for estimated expenses. At the end of 2021, the temporary difference in $256 million. Payne han no other temporary differences. Toxable income for 2021 is $612 million ond the tax rate is 25% Payne has o voluation allowance of $34 million for the deferred rax astet at the beginning of 2021 Required: 1. Prepare the joumal entry(s) to record Payne's income toxes for 2021 , assuming it is more likely than not that the deferred tax asset will be realized in full 2. Prepare the joumal entry(3) to record Payne's income toxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized
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