Question: Chua Corporation has a taxable temporary difference related to depreciation
Chua Corporation has a taxable temporary difference related to depreciation of $715,000 at December 31, 2011. This difference will reverse as follows: 2012, $53,000; 2013, $310,000; and 2014, $352,000. Enacted tax rates are 37% for 2012 and 2013, and 43% for 2014. Calculate the amount that Chua should report as a future tax asset or liability at December 31, 2011.
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