Question $32$

$7$ points

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The financial reporting carrying value of Boze Music's only depreciable asset exceeded its tax basis by $$150,000$ at December $31,2016.$ This was a result of differences between straight$-$line depreciation for financial reporting purposes and MACRS for tax purposes. The asset was acquired earlier in the year. Boze has no other temporary differences. The enacted tax rate is $30\%$ for $2016$ and $40\%$ thereafter. Boze should report the deferred tax effect of this difference in its December $31,2016,$ balance sheet

$$

$$A liability of $$45,000.$

$$A liability of $$60,000.$

$$An asset of $$45,000.$

$$An asset of $$60,000.$