Pharoah Corp. had a Deferred Tax Asset account with a balance of $$110,700$ at the end of $2022$ due to a single temporary difference of $$369,000$ related to warranty liability accruals. At the end of $2023,$ this same temporary difference has increased to $$402,000.$ Taxable income for $2023$ is $$914,000.$ The tax rate is $30\%$ for all years.

Prepare the journal entries for the following situations. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Assuming it is more likely than not that $$28,000$ of the deferred tax asset will not be realized, prepare the journal entries to record income taxes for $2023.$ Pharoah does not use a valuation allowance account.

In $2024,$ the company's prospects improved. While there was no change in the temporary deductible differences underlying the Deferred Tax Asset account, it was now considered more likely than not that the company would be able to make full use of the temporary differences. Prepare the entry, if applicable, to adjust the Deferred Tax Asset account.

No$.$ Date Account Titles and Explanation

Debit

Credit

$2023$

$($To record current tax expense$)$

$2023$

$$

$$

$$

$$

$$

$($To record deferred tax expense$)$

$2024$