At the end of the preceeding year marco corp had a deferred

Reference no: EM13486140

At the end of the preceeding year, Marco Corp had a deferred tax asset of $20,000,000 attributable to it's only temporary difference of $50,000,000 for estimated expenses. At the end of the current year, the temporary difference is $45,000,000. At the beginning of the year there was no valuation allowance for the deferred tax asset. At the end of the year, Marco now believes that is more likely than not that 50% of the deferred tax asset will be realized. Taxable income is 11,000,000 and the tax rate is 40% for all years.

Prepare the journal entry for the income tax provision and supporting computations for all accounts involved.

Reference no: EM13486140

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