Tax Drill - Deferred Tax Asset Ion Corporation has income tax expense/payable for book purposes of $200,000...

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Accounting

Tax Drill -
Deferred Tax Asset Ion Corporation has income taxexpense/payable for book purposes of $200,000 and $250,000 for taxpurposes. Assume that Ion will only be able to use $30,000 of anydeferred 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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SolutionGiven dataIncome tax expenses for bookpurpose200000Income tax expenses for tax purpose 250000Loan will be able to use See Answer

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Tax Drill -Deferred Tax Asset Ion Corporation has income taxexpense/payable for book purposes of $200,000 and $250,000 for taxpurposes. Assume that Ion will only be able to use $30,000 of anydeferred 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).???