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At the end of 2020 , Payne Industrles had a deferred tax asset account with a balance of $40 million attributable to a temporary booktax
At the end of 2020 , Payne Industrles had a deferred tax asset account with a balance of $40 million attributable to a temporary booktax dlifference of $160 million in a liability for estimated expenses. At the end of 2021 , the temporary dlfference is $112 million. Payne has no other temporary dlfferences. Taxable income for 2021 is $288 million and the tax rate is 25%. Payne has a valuation allowance of $16 million for the deferred tax asset at the beginning of 2021 . Required: 1. Prepare the Journal entry(s) to record Payne's Income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. 2. Prepare the journal entry(s) to record Payne's Income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultumately 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 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. (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 worksheet Nate: Enter debits before cred ts. Journal entry worksheet Note: Enter debits before credits
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