Question: Can u explain the answer N0.216 A company reported pretax financial statement income of $420,000 for Year 1 . Taxable income for Year 1 was

Can u explain the answer

Can u explain the answer N0.216 A company reported pretax financial statement

N0.216 A company reported pretax financial statement income of $420,000 for Year 1 . Taxable income for Year 1 was $300,000 due to a temporary timing difference in depreciation expenses. The income tax rate is 30 percent. In its Year 1 balance sheet, the company should record a deferred tax: A. asset of $36,000 B. asset of $120,000 C. liability of $36,000 0. liability of $120,000 Answer: C

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