Assuming that at the end of 20X3, its first year of operations, Tasha Company has only...
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Assuming that at the end of 20X3, its first year of operations, Tasha Company has only one type of temporary difference-a $20,000 taxable temporąry difference that is expected to reverse at the rate of $5,000 per year in each of the years 20X4-20X7. If relevant, assume that no valuation allowance would be needed. Assuming a 34% tax rate, Tasha should report which of the following on its December 31, 20X3, balance sheet? A $1,700 deferred tax asset classified as current and a $5,100 deferred tax asset classified as noncurrent A A $1,700 deferred tax liability classified as current and a $5,100 deferred tax liability classified as noncurrent B A $6,800 deferred tax liability classified as current D A $6,800 deferred tax liability classified as noncurrent Assuming that at the end of 20X3, its first year of operations, Tasha Company has only one type of temporary difference-a $20,000 taxable temporąry difference that is expected to reverse at the rate of $5,000 per year in each of the years 20X4-20X7. If relevant, assume that no valuation allowance would be needed. Assuming a 34% tax rate, Tasha should report which of the following on its December 31, 20X3, balance sheet? A $1,700 deferred tax asset classified as current and a $5,100 deferred tax asset classified as noncurrent A A $1,700 deferred tax liability classified as current and a $5,100 deferred tax liability classified as noncurrent B A $6,800 deferred tax liability classified as current D A $6,800 deferred tax liability classified as noncurrent
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Answer Deferred Tax LiabilityAsset is created because of different treatment of items as per Corpora... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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