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Kery Inc. Had the following balances: Deferred tax asset, Dec 31, 2020 Valuation allowance for deferred tax asset, unadjusted Dec 31, 2020 $80,000 Dr. 10,000
Kery Inc. Had the following balances: Deferred tax asset, Dec 31, 2020 Valuation allowance for deferred tax asset, unadjusted Dec 31, 2020 $80,000 Dr. 10,000 Management reviewed all available positive and negative evidence to estimate that it was more likely than not that 45% of the deferred tax asset would not be realized. The entry to adjust the valuation allowance to the desired ending balance would include: Select one: a. A debit to Income Tax Expense for $36,000 b. A debit to Valuation Allowance for Deferred Tax Asset for $36,000 C. A credit to Deferred Tax Asset for $26,000 d. A credit to Valuation Allowance for Deferred Tax Asset for $26,000
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