Question: Problem 4 . The firm started the year with no Deferred Tax Assets or Deferred Tax Liabilities. The only difference between the GAAP Income Statement

Problem

4 .

The firm started the year with no Deferred Tax Assets or Deferred Tax Liabilities. The only difference between the GAAP Income Statement and the Tax Return is in the Revenues. They are $

1, 000

higher on the GAAP side. The expenses are the same for the GAAP and tax side. The tax rate is

18 % .

Will this company have a DTA or a DTL at the end of the year, and in what amount?

Problem 4 . The firm started the year with no

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