Bally, Inc, booked a deferred tax asset of $40,000 resulting from a basis difference in warranty liabilities Management has assessed that it is more likely than not that the firm will not realize 45% of the deferred tax asset. Provide the necessary journal entries to record the deferred tax asset, and what is the valuation allowance? (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by preparing the journal entry to record the deferred tax asset. Account Current year Now prepare the journal entry to record the valuation allowance Account Current year