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has a deferred tax asset account with a balance of $82,320 at the end of 2019 due to a single cumulative temporary difference of $411,600.
has a deferred tax asset account with a balance of $82,320 at the end of 2019 due to a single cumulative temporary difference of $411,600.
Marigold Corp. has a deferred tax asset account with a balance of $82,320 at the end of 2019 due to a single cumulative temporary difference of $411,600. At the end of 2020, this same temporary difference has increased to a cumulative amount of $416,500. Taxable income for 2020 is $794,100. The tax rate is 20% for all years. At the end of 2019, Marigold Corp. had a valuation account related to its deferred tax asset of $43,300. (a) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that the deferred tax asset will be realized in full. (Credit account tites are automatically indented when amount is entered. Do not indent manually If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Account Titles and Explanation Income Tax Expense Deferred Tax Asset Income Tax Payable (To record income tax expense) Deferred Tax Asset Income Tax Expense (To adjust allowance account) (b) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that none of the deferred tax asset will be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tites and enter for the amounts.) Debit Credit Account Titles and Explanation Income Tax Expense Deferred Tax Asset Income Tax Payable (To record income tax expense) Income Tax Expense Deferred Tax AssetStep by Step Solution
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