Tax Drill -

Deferred Tax Asset Ion Corporation has income tax expense/payable for book purposes of $200,000 and $250,000 for tax purposes. Assume that Ion will only be able to use $30,000 of any deferred tax asset with the balance expiring.

As a result, Ion will record a deferred tax asset of $ 50 (incorrect)

and a valuation allowance of $ 20 (incorrect) .

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