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Horner Corporation has a deferred tax asset at December 31, 2011 of $80,000 due to the recognition of potential tax benefits of an operating
Horner Corporation has a deferred tax asset at December 31, 2011 of $80,000 due to the recognition of potential tax benefits of an operating loss carryforward. The enacted tax rates are as follows: 40% for 2008-2010; 35% for 2011; and 30% for 2012 and thereafter. Assuming that management expects that only 50% of the related benefits will actually be realized, a valuation account should be established in the amount of:
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