Use the same information as in BE17- 15, but now assume Maves is an IFRS reporter. What is the journal entry to record the deferred tax asset?
BE17-15
Maves, Inc. booked a deferred tax asset of $ 45,000 due to a basis difference in warranty liabilities. Management has assessed that it is more likely than not that the firm will not realize 30% of the deferred tax asset. What are the necessary journal entries to record the deferred tax asset and valuation allowance?