Life of Pi Corp.at the end of 2019, its first year of operations, prepared a reconciliation...

 

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Life of Pi Corp.at the end of 2019, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Earnings before Taxes: 50000 Estimated litigation expense: 135000 Installment sales collections in future: -90000 Taxable income: 95000 The estimated litigation expense of 135000 will be deductible in 2021 when it is expected to be paid. the gross profit from the installment sales will be realized in the amount of 45000 in each of the next two years. the estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as 500000 current and 500000 noncurrent. the income tax rate is 34% for all years. O Change in deferred tax asset 135000 and Change in deferred tax liability 30600 O Change in deferred tax asset 135000 and Change in deferred tax liability 45900 O Change in deferred tax asset 135000 and Change in deferred tax liability 90000 O Change in deferred tax asset 45900 and Change in deferred tax liability 30600 O Change in deferred tax asset 45900 and Change in deferred tax liability 45900 O Change in deferred tax asset 45900 and Change in deferred tax liability 90000 O Change in deferred tax asset 30600 and Change in deferred tax liability 30600 O Change in deferred tax asset 30600 and Change in deferred tax liability 45900 O Change in deferred tax asset 30600 and Change in deferred tax liability 90000 Life of Pi Corp.at the end of 2019, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Earnings before Taxes: 50000 Estimated litigation expense: 135000 Installment sales collections in future: -90000 Taxable income: 95000 The estimated litigation expense of 135000 will be deductible in 2021 when it is expected to be paid. the gross profit from the installment sales will be realized in the amount of 45000 in each of the next two years. the estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as 500000 current and 500000 noncurrent. the income tax rate is 34% for all years. O Change in deferred tax asset 135000 and Change in deferred tax liability 30600 O Change in deferred tax asset 135000 and Change in deferred tax liability 45900 O Change in deferred tax asset 135000 and Change in deferred tax liability 90000 O Change in deferred tax asset 45900 and Change in deferred tax liability 30600 O Change in deferred tax asset 45900 and Change in deferred tax liability 45900 O Change in deferred tax asset 45900 and Change in deferred tax liability 90000 O Change in deferred tax asset 30600 and Change in deferred tax liability 30600 O Change in deferred tax asset 30600 and Change in deferred tax liability 45900 O Change in deferred tax asset 30600 and Change in deferred tax liability 90000

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Answer Change in deferred tax assets 45900 and change in deferred tax liability 3... View the full answer