At the end of 2023, Payne Industries had a deferred tax asset account with a balance of $65 million attributable to a temporary book-tax difference of $260 million in a liability for estimated expenses. At the end of 2024, the temporary difference is $192 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2024 is $468 million and the tax rate is 25%.

Required:

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

1	1	Income tax expenseselected answer correct	134selected answer correct	not attempted
		Deferred tax assetselected answer correct	not attempted	17selected answer correct
		Income tax payableselected answer correct	not attempted	117selected answer correct
2	2	Valuation allowanceselected answer incorrect	26selected answer incorrect	not attempted
		Income tax expenseselected answer incorrect	not attempted	26 selected answer inccorrect