Horner Corporation has a future deductible difference at December 31, 2026 of $200,000. The enacted tax rates are 30% for 2026 and thereafter. Assuming that management expects that only 50% of the related benefits will be realized, a valuation allowance account should be established in the amount of Select one: O A. $40,000. O B. $100,000. C. $30,000. O D. $35,000.

Horner Corporation has a future deductible difference at December 31,2026 of $200,000. The enacted tax rates are 30% for 2026 and thereafter. Assuming that management expects that only 50% of the related benefits will be realized, a valuation allowance account should be established in the amount of Select one: A. $40,000. B. $100,000. C. $30,000. D. $35,000