Pharoah, Inc. had pre-tax accounting income of $3100000 and a tax rate of 20% in 2021, its first year of operations. During 2021 the company had the following transactions:

Received rent from Jane, Co. for 2022	$100000
Municipal bond income	$124000
Depreciation for tax purposes in excess of book depreciation	$64000
Installment sales profit to be taxed in 2022	$166000

At the end of 2021, which of the following deferred tax accounts and balances exist at December 31, 2021?

Account

Balance

Deferred tax liability

$20000

Deferred tax asset

$32800

Deferred tax asset

$20000

Deferred tax liability

$32800

Answer rating: 100% (QA)

Deferred tax asset Rent recieved from Jan... View the full answer