Cross Company reported the following results for the year ended December 31, 2014, its first year of operations:
_________________________________________________________2014
Income (per books before income taxes)...........................$ 1,500,000
Taxable income............................................................2,400,000
The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2015. What should Cross record as a net deferred tax asset or liability for the year ended December 31, 2014, assuming that the enacted tax rates in effect are 40% in 2014 and 35% in 2015? (Points : 3)
$360,000 deferred tax liability
$315,000 deferred tax asset
$360,000 deferred tax asset
$315,000 deferred tax liability