Gamma had previously recorded a deferred tax asset of $400 due to a temporary difference related to warranty liabilities
Posted: Mon Apr 25, 2022 7:26 am
Gamma had previously recorded a deferred tax asset of $400 due
to a temporary difference related
to warranty liabilities ($1000 × 40%). It now believes it is more
likely than not that it will not realize 25% of
the deferred tax asset. What is the necessary J.E. to record the
valuation allowance adjustment? What is
the new book (carrying) value of the DTA on the balance
sheet?
to a temporary difference related
to warranty liabilities ($1000 × 40%). It now believes it is more
likely than not that it will not realize 25% of
the deferred tax asset. What is the necessary J.E. to record the
valuation allowance adjustment? What is
the new book (carrying) value of the DTA on the balance
sheet?