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Exercise 16-12 (Algo) Deferred tax asset; taxable income given; valuation allowance (L016-4) At the end of 2020. Payne Industries had a deferred tax asset account

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Exercise 16-12 (Algo) Deferred tax asset; taxable income given; valuation allowance (L016-4) At the end of 2020. Payne Industries had a deferred tax asset account with a balance of $115 million attributable to a temporary book- tax difference of $460 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $352 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $828 milion and the tax rate is 25%. Required: 1. Prepare the journal entryts) to record Payne's income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full, 2. Prepare the journal entryis) to record Payne's income taxes for 2021, assuming is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare the journal entry(s) to record Payne's income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full. 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 Transaction General Journal Debit Credit 1 Income tax expense 234 Deferred tax asset 27 Income tax payable 207 1 @ OOO 2 2 Valuation allowance Income tax expense 40% Required 1 Required 2 Prepare the journal entry(s) to record Payne's income taxes for 2021, assuming it is more likely than not that only one- fourth of the deferred tax asset ultimately 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).) Show less No Event General Journal Credit Debit 234 1 1 Income tax expense Deferred tax asset Income tax payable 27 207 OSO 2 2 20 Income tax expense Valuation allowance 20%

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