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Maui Resort Inc. determined that the balance in its deferred tax asset account on December...

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Accounting

Maui Resort Inc. determined that the balance in its deferred tax asset account on December 31, 2020, was $50,000. Management reviewed all available positive and negative evidence to estimate that 30% of the deferred tax asset was more likely than not to be realized. The valuation allowance for deferred tax assets has a December 31, 2020, unadjusted balance of $4,000 (credit). Record the entry to adjust the allowance on December 31, 2020.

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Date Account Name Dr. Cr. 0 0 0 0 Dec. 31, 202 V Deferred Tax Asset Valuation Allowance for Deferred Tax Asset Please ans Income Tax Payable Liability for Unrecognized Tax Benefits Deferred Tax Liability Income Tax Expense N/A

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