Problem 14-43 (LO. 5) GinnyCo rep a $100,000 income tax payable in the current year. Ginny Co holds a general business tax credit of $40,000 that it cannot use this year is management believes that it is more likely than not that one fourth of the credit carryforward will expire unused. a. Compute Ginny Co's income tax provision for the year, expressed as a Microsoft Excel formula. TAXPROV=TAX PAY-(MIN(DEFTAX,(DEFTAX-VALALL)) VALALL=DEFTAX UNUSED% b. Construct the journal entry to report these items. JOURNAL DATE Description Post. Ref. Debit Credit Income tax expense (provision) 80,000 Deferred tax asset 30,000 X Valuation allowance 10,000 Income tax payable 100,000 Feedback Check My Work The deferred component of the book tax expense is called the deferred tax expense or deferred tax benefit. This component represents the future tax cost (or savings) connected with income reported in the current-period financial statement. Deferred tax expense or benefit is created as a result of temporary differences. ASC 740 (SFAS 109) adopts a balance sheet approach to measuring deferred taxes. Under this approach, the deferred tay Rynense or benefit ir the change from no more than in huis