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Dunlop Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2002 due to a single cumulative temporary
Dunlop Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2002 due to a single cumulative temporary difference of $375,000. At the end of 20x3, this same temporary difference has increased to a cumulative amount of $500,000. Taxable income for 20X3 is $850,000. The tax rate is 40% for all years. No valuation allowance related to the deferred tax asset is in existence at the end of 20X2, however, Dunlop Corp. believes it is more likely than not that $30,000 of the deferred tax asset will not be realized When Dunlop Corp. prepares the journal entry to record tax expense, what will Dunlop credit or debit to the deferred tax account? O $290,000 Debit O $200,000 Credit O $240,000 Credit O $50,000 Debit
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