As of December 31, 2016, the Williamsburg Company reported a deferred tax asset of $60,000 related to accrued, unpaid warranty costs. However, since profits have been declining, Williamsburg decides that it is more likely than not that $24,000 of the deferred tax asset will not be realized. The entry to record the valuation allowance would include a
A) debit to Income Tax Expense for $60,000.
B) credit to Income Tax Expense for $24,000.
C) debit to Allowance to Reduce Deferred Tax Asset to Realizable Value for $24,000.
D) credit to Allowance to Reduce Deferred Tax Asset to Realizable Value for $24,000.
D
You might also like to view...
According to a study by Behavioral Sciences Research Press, the problem of call reluctance in sales is widespread and costly. Which of the following findings is true?
A. In some cases, the call-reluctant salesperson loses $50,800 per month in gross sales. B. The call-reluctant salesperson loses more than 50 new accounts per month to competitors. C. Eighty percent of all sales veterans experience one or more episodes of call reluctance severe enough to threaten their continuation in sales. D. Some 96 percent of all new salespeople who fail within their first year do so because of insufficient prospecting activity. E. Call-reluctant stockbrokers acquire 48 fewer new accounts per year than brokers who have learned to manage their fear.
Which one of the following measurement bases applies to investments that are classified as held-to-maturity?
a. Current value b. Book value c. Effective rate of interest method d. Lower-of-cost or market
If a company's rate of return on common stockholders' equity is greater than its rate of return on total assets, the company is effectively using leverage
Indicate whether the statement is true or false
Federal wiretapping law covers electronic forms of communication
a. True b. False Indicate whether the statement is true or false