Question 4 (10 points) (a) Bobos Balloons Inc. has pre-tax income of $150,000 at the end of 2019. The tax rate is 15%. The firm has two temporary differences. One temporary difference of $20,000 is the result of unrealized holding gains. The other temporary difference of $10,000 is the result of advance rental receipts

. Instructions Record the necessary income tax related journal entries.

(b) A company has a deductible temporary difference of $15,000 for tax purposes. The tax rate is 15%. The income tax expense for the period is $40,000. After review of evidence, the company determines that it is more likely that not that it will not realize $10,000 of this deductible difference. At the end of the next accounting period, the company expects to realize $12,000 of this deductible difference. Instructions Record the necessary adjusting entry for the allowance to reduce deferred tax asset account and all necessary adjusting entries.