The Betta Group reports income before taxes in the amount of $625,000 and has a 30% tax rate.Additionally,the company estimates a deferred tax asset of $45,000 due to a basis difference in warranty liabilities.After reviewing all available evidence,management determines that only 60% of this amount will ultimately result in tax-deductible expenses over the warranty period.
Prepare the necessary journal entries to record the tax provision and valuation allowance for Betta Group under (a)U.S.GAAP and (b)IFRS.

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The Answer of The Betta Group reports income before taxes in the amount of $625,000 and has a 30% tax rate.Additionally,the company estimates a deferred tax asset of $45,000 due to a basis difference in warranty liabilities.After reviewing all available evidence,management determines that only 60% of this amount will ultimately result in tax-deductible expenses over the warranty period.
Prepare the necessary journal entries to record the tax provision and valuation allowance for Betta Group under (a)U.S.GAAP and (b)IFRS.

The Betta Group Reports Income Before Taxes in the Amount