Freeman, Inc., reported net income of $40,000 for 2015. However, the company's income tax return excluded a
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Freeman, Inc., reported net income of $40,000 for 2015. However, the company's income tax return excluded a revenue item of $3,000 (reported on the income statement) because under the tax laws the $3,000 would not be reported for tax purposes until 2016. Assuming a 30% income tax rate, this situation would cause a 2015 deferred tax amount of
a. $3,000 asset.
b. $3,000 liability
c. $ 900 asset.
d. $ 900 liability.
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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