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At the end of 2023 , Payne Industries had a deferred tax asset account with a balance of $60 million attributable to a temporary booktax
At the end of 2023 , Payne Industries had a deferred tax asset account with a balance of $60 million attributable to a temporary booktax difference of $240 million in a liability for estimated expenses. At the end of 2024 , the temporary difference is $176 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2024 is $432 million and the tax rate is 25%. Required: 1. 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. 2. 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
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