Rahul bhaliya Bonita Corp. has a deferred tax asset account with a balance of $67,500 at the end of 2019 due to a single cumulative temporarydifference of $337,500. At the end of 2020, this same temporary difference has increased to a cumulative amount of $448,200.Taxable income for 2020 is $864,500. The tax rate is 20% for all years. At the end of 2019, Bonita Corp. had a valuation accountrelated to its deferred tax asset of $48,900.(a) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not thatthe deferred tax asset will be realized in full. (Credit account titles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Account Titles and Explanation(To record income tax expense)(To adjust allowance account)DebitCredit||||(b) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not thatnone of the deferred tax asset will be realized. (Credit account titles are automatically indented when amount is entered. Do notindent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…

Bonita Corp. has a deferred tax asset account with a balance of $67,500 at the end of 2019 due to a single cumulative temporary difference of $337,500. At the end of 2020, this same temporary difference has increased to a cumulative amount of $448,200. Taxable income for 2020 is $864,500. The tax rate is 20% for all years. At the end of 2019, Bonita Corp. had a valuation account related to its deferred tax asset of $48,900.