Grouper Corp. had a Deferred Tax Asset account with a balance of $83,700 at the end of 2019 due to a single temporary difference of $279,000 related to warranty liability accruals. At the end of 2020, this same temporary difference has increased to $311,000. Taxable income for 2020 is $919,000. The tax rate is 30% for all years.

Please Fix

Your answer is partially correct. Prepare the journal entries for the following situations. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) 1. 2. Assuming it is more likely than not that $27,000 of the deferred tax asset will not be realized, prepare the journal entries to record income taxes for 2020. Grouper does not use a valuation allowance account. In 2021, the company's prospects improved. While there was no change in the temporary deductible differences underlying the Deferred Tax Asset account, it was now considered more likely than not that the company would be able to make full use of the temporary differences. Prepare the entry, if applicable to adjust the Deferred Tax Asset account Debit Credit 275700 275700 Date Account Titles and Explanation 2020 Current Tax Expense Income Tax Payable (To record current tax expense) Deferred Tax Expense Allowance to Reduce Deferred Tax Asset to Expected Rea (To record deferred tax expense) Allowance to Reduce Deferred Tax Asset to Expected Realiz 2020 27000 27000 2021 27000 Deferred Tax Expense 27000