Temporary book- tax difference and deferred tax asset please.;E16-10;At the end of 2012, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book-tax difference of $75 million in a liability for estimated expenses. At the end of 2013, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2013 is $180 million and the tax rate is 40%.;1) Prepare the journal entry(s) to record Payne's income taxes for 2013, assuming it is more likely than not that the deferred tax asset will be realized.;2) Prepare the journal entry(s) to record Payne's income taxes for 2013, assuming it is more likely than not that one-half of the deferred tax asset will ultimately be realized.
Paper#81640 | Written in 18-Jul-2015Price : $22