Bourne Company received rent in advance of $9,000 on December 31, 2016, which was taxable when received
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Question:
Bourne Company received rent in advance of $9,000 on December 31, 2016, which was taxable when received for income tax purposes. The company's effective tax rate was 30%, and this was the only temporary difference. Which of the following should be reported on the December 31, 2016 balance sheet?
a. $2,700 as a current deferred tax asset
b. $9,000 as a current deferred tax liability
c. $2,700 as a current deferred tax liability
d. $9,000 as a current deferred tax asset
Related Book For
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
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