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BE17-15. Realizability of Deferred Assets. [Learning Objective 4] Maves, Inc. booked a deferred tax asset of $45,000 resulting from a basis difference in warranty liabilities.
BE17-15. Realizability of Deferred Assets. [Learning Objective 4] Maves, Inc. booked a deferred tax asset of $45,000 resulting from a basis difference in warranty liabilities. Management has assessed that it is more likely than not that the firm will not realize 30% of the deferred tax asset. Provide the necessary journal entries to record the deferred tax asset, and what is the valuation allowance
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