Exercise 16-10 Deferred tax asset; taxable income given; valuation allowance [LO16-3] 1.05 points At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $38 million attributable to a temporary book- tax difference of $95 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $90 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $200 million and the tax rate is 40%. Required: 1. Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. 2. Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare al entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) General Journal Credit No 1 Event 1 Debit 82,000,000 X Income tax expense Deferred tax asset Income tax payable 2,000,000 80,000,000 Valuation allowance-Deferred tax asset Income tax expense Required 1 Required 2 > Exercise 16-10 Deferred tax asset; taxable income given; valuation allowance [LO16-3] 1.05 points At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $38 million attributable to a temporary book- tax difference of $95 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $90 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $200 million and the tax rate is 40% Required: 1. Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized. 2. Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) No Event General Journal Credit Debit 82,000,000 Income tax expense Deferred tax asset Income tax payable 2,000,000 80,000,000 Income tax expense Valuation allowance-Deferred tax asset