EXAMLB (d) Answer the ending balance of the deferred tax asset (or liability) at the end of 2015 Problem 2-2 (10 pts) Emmett Company has a deferred tax asset of $1.0 from the recording of th company's CPA has asked management whether a valuation allowance should be recorded to reduce the deferred tax asset to zero 0,000 at December 31, 2018, This amount arises e company's liability for postretirement benefits other than pensions. The Required: (a) Why would Emmett not want to report a valuation allowance? (b) Assume that the company determines that a valuation allowance of $400,000 is required How would the company have arrived at this determination, and what effect will it have on net income for fiscal 2018? In 2019, if Emmett will decide to release the valuation allowance recognized in prepare the journal entry regarding the valuation account for 2019 2018