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Indigo, Inc. has a deferred tax asset account with a balance of $ 242,400 at the end of 2019 due to a single cumulative temporary

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Indigo, Inc. has a deferred tax asset account with a balance of $ 242,400 at the end of 2019 due to a single cumulative temporary difference of $ 808,000. At the end of 2020, this same temporary difference has decreased to a cumulative amount of $ 713,000 Taxable income for 2020 is $ 618,000. The tax rate is 30% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2019. (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. (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 titles and enter for the amounts.) Account Titles and Explanation Debit Credit -180,600 Income Tax Expense Income Tax Payable (b) Assuming that it is more likely than not that one-half of the deferred tax asset will not be realized, prepare the journal entry at the end of 2020 to record the valuation account. (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 titles and enter for the amounts.) Debit Credit Account Titles and Explanation (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. (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 titles and enter for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense -180,600 Income Tax Payable (b) Assuming that it is more likely than not that one-half of the deferred tax asset will not be realized, prepare the journal entry at the end of 2020 to record the valuation account. (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 titles and enter for the amounts.) Debit Credit Account Titles and Explanation Income Tax Expense

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