On December 31, Delta Inc. recorded $61600 of deferred revenue on customers deposits received in advance of satisfaction of performance obligations. However, this amount is taxable during the year when cash was received. Assume a tax rate of 25% and pre-tax GAAP income of $352000 for the year.

 

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a. Determine the GAAP basis of deferred revenue on December 31. Deferred Revenue (GAAP basis) $ b. Determine the tax basis of deferred revenue on December 31. Deferred Revenue (tax basis) $ c. Determine Delta Inc's deferred tax asset balance on December 31. Deferred tax asset balance $ a. Determine the GAAP basis of deferred revenue on December 31. Deferred Revenue (GAAP basis) $ b. Determine the tax basis of deferred revenue on December 31. Deferred Revenue (tax basis) $ c. Determine Delta Inc's deferred tax asset balance on December 31. Deferred tax asset balance $

Answer rating: 100% (QA)

To calculate the GAAP basis of deferred revenue on December 31 we need to consider th... View the full answer