Kathleen Company prepared the following reconciliation for the first year of operations: Pretax financial income for...

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Kathleen Company prepared the following reconciliation for the first year of operations: Pretax financial income for 2020 9,000,000 Tax-exempt interest revenue Temporary difference Taxable Income The temporary difference will reverse evenly in 2021 and 2022 at an enacted tax rate of 35% in 2021, and 32% in 2022. The tax rate for 2020 is 30%. What amount should be reported as deferred tax asset or liability on December 31, 2020? O 720,000 asset 753,750 liability O 753,750 asset (750,000) (2,250,000) 6,000,000 720,000 liability Kathleen Company prepared the following reconciliation for the first year of operations: Pretax financial income for 2020 9,000,000 Tax-exempt interest revenue Temporary difference Taxable Income The temporary difference will reverse evenly in 2021 and 2022 at an enacted tax rate of 35% in 2021, and 32% in 2022. The tax rate for 2020 is 30%. What amount should be reported as deferred tax asset or liability on December 31, 2020? O 720,000 asset 753,750 liability O 753,750 asset (750,000) (2,250,000) 6,000,000 720,000 liability

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Introduction In reconciling the pretax financial income for the first year of operations in 2... View the full answer