Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 19 - Accounting for Income Taxes - Review and Practice - Brief Exercises - Page 1094: BE19-7

Answer

The journal entries shall be: Income tax expense.................................60,000 .........Allowance for reduced tax asset ..............60,000

Work Step by Step

The allowance account shall be a contra account for the tax asset to reduce it in the books.
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