2.

• What does the dollar amount in a DTA or DTL actually refer to?
• If a future tax rate changes, tell me the journal entry to adjust the DTA or DTL to the new balance.
• Determining if an item creates a DTA or DTL and the dollar amount. For example, if I say Due to a temporary difference, next years book income will be 100 higher than taxable income, and the tax rate is 20%. Does the company have a DTA or DTL, and for how much?
• I will give you the companys balance in the DTA and the Allowance for DTA accounts. Something like: A company has a DTA of 500 and an Allowance of 100. The company predicts that 80 of the DTA will never reverse out. What is the appropriate journal entry? For this, you would need to know the appropriate entry to get the allowance to 80. There will be two of these questionsone will have a preexisting allowance and one will not.