Horner Corporation has a deferred tax asset at December 31, 2015 of $80,000 due to the recognition of potential tax benefits of an operating loss  carryforward. The enacted tax rates are as follows: 40% for 2012–2014; 35%  for 2015; and 30% for 2016 and thereafter. Assuming that management  expects that only 60% of the related benefits will actually be realized, a  valuation account should be established in the amount of:

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A: Since you have posted multiple questions, we will provide the solution only for the first question…

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A: The correct answer is 3.

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A:

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Q: On December 31, 2021

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