Violet, Inc B) C) D)

Violet, Inc. recorded a deferred tax asset of $43,000 due to a book-tax difference in warranty liabilities. Management has assessed that it is more likely than not that the firm will not realize 45% of the deferred tax asset. What is the necessary journal entry to record the valuation allowance?

A) $$\begin{array} { | l | r | r | } \hline \text { Income Tax Expense } & 19,350 & \\\hline \text { Valuation Allowance for Deferred Tax Asset } & & 19,350 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Deferred Tax Asset } & 19,350 & \\\hline \text { Valuation Allowance for Deferred Tax Asset } & & 19,350 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Income Tax Expense } & 43,000 & \\\hline \text { Valuation Allowance for Deferred Tax Asset } & & 43,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Deferred Tax Asset } & 43,000 & \\\hline \text { Valuation Allowance for Deferred Tax Asset } & & 43,000 \\\hline\end{array}$$