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question at the end of the preceeding year rushton corp had adeferred tax asset of 2 4287052

Question

At the end of the preceeding year, Rushton Corp had adeferred tax asset of $20,000,000 attributable to it's onlytemporary difference of $50,000,000 for estimated expenses. At theend of the current year, the temporary difference is $45,000,000.At the beginning of the year there was no valuation allowance forthe deferred tax asset. At the end of the year, Rushton nowbelieves that is more likely than not that 50% of the deferred taxasset will be realized. Taxable income is 11,000,000 and the taxrate is 40% for all years.

Please prepare the journal entry for the income taxprovision and show work.

 

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