Maui Resort Inc. determined that the balance in its deferred tax asset account on December 31 was $60,000. Management reviewed all available positive and negative evidence to estimate that 30% of the deferred tax asset was more likely than not to be realized. The valuation allowance for deferred tax assets has a December 31 unadjusted balance of $4,800 (credit). Record the entry to adjust the allowance on December 31.

   

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Coffee Corporation recognized the following amounts in a recent annual report. $ millions Current Fiscal Year-End Prior Fiscal Year-End Deferred tax asset $990.7 $996.0 $71.9 Valuation allowance $35.2 $1.690.6 Net income attributable to Coffee $1,654.4 a. Calculate the deferred tax asset valuation allowance as a percentage of deferred tax assets for both fiscal years presented. Numerator / Denominator - 0/5 0/5 b. Based on your results in part a. does it appear that the company considers deferred tax benefits to be realized at a higher or lower rate than the prior year? Current fiscal year $ Prior fiscal year $ Result Coffee Corporation recognized the following amounts in a recent annual report. $ millions Current Fiscal Year-End Prior Fiscal Year-End Deferred tax asset $990.7 $996.0 $71.9 Valuation allowance $35.2 $1.690.6 Net income attributable to Coffee $1,654.4 a. Calculate the deferred tax asset valuation allowance as a percentage of deferred tax assets for both fiscal years presented. Numerator / Denominator - 0/5 0/5 b. Based on your results in part a. does it appear that the company considers deferred tax benefits to be realized at a higher or lower rate than the prior year? Current fiscal year $ Prior fiscal year $ Result

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