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. . Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of 2019 due to a
. . Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of 2019 due to a single cumulative temporary difference of $375,000. At the end of 2020, this same temporary difference has increased to a cumulative amount of $500,000. Taxable income for 2020 is $820,000. The tax rate is 20% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2019. Assuming that it is more likely than not that $15,000 of the deferred tax asset will not be realized, prepare the journal entries required for 2020.
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