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  3. misty had reported a deferred tax asset of $25,000

Misty had reported a deferred tax asset of $25,000 and no valuation allowance at December...

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Accounting

Misty had reported a deferred tax asset of $25,000 and no valuation allowance at December 31,2023. In its December 31,2024, balance sheet, Misty Co. had income taxes payable of $60,000 and a deferred tax asset of $28,000 before determining the need for a valuation account. No estimated tax payments were made during 2024. At December 31,2024, Misty determined that it was more likely than not that 25% of the deferred tax asset would NOT be realized. In its 2024 income statement, what amount should Misty report as total income tax expense?
$64,000
$63,250
$62,000
$65,000
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