Bronchio Companys DTA account has a balance of $300,000 on December 31, 2021, that came about from a difference caused by accrual (estimate) of warranty expense. Here are some facts:

* The DTA account balance has increased $20,000 during 2021

* The 2020 DTA ending balance of $280,000.

* Taxable income for 2021 is $880,000

* The enacted tax rate is 25%

Required:

1. Prepare the December 31, 2021, income tax journal entry and assume that it is more likely than not that the deferred tax asset will be realized.
2. Now prepare the income tax journal entry(ies) on December 31, 2021, assuming that it is more likely than not that 30% of the DTA will not be realized.