Save Answer JJB Corporation suffered an accounting and taxable loss of $200,000 in 20X5, its first...

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Save Answer JJB Corporation suffered an accounting and taxable loss of $200,000 in 20X5, its first year of operations. There were no temporary or permanent differences associated with the company during that year. JJB's management estimates that it is probable that they will recover 70% of these losses. The enacted tax rate for 20X5 is 30%; the enacted rate subsequent to 20X5 is 32%. What is the amount of the deferred tax asset that will be recognized in JJB's 20X5 financial statements? $64,000 b. $60,000 $42,000 d.$44,800 Save Answer JJB Corporation suffered an accounting and taxable loss of $200,000 in 20X5, its first year of operations. There were no temporary or permanent differences associated with the company during that year. JJB's management estimates that it is probable that they will recover 70% of these losses. The enacted tax rate for 20X5 is 30%; the enacted rate subsequent to 20X5 is 32%. What is the amount of the deferred tax asset that will be recognized in JJB's 20X5 financial statements? $64,000 b. $60,000 $42,000 d.$44,800

Answer rating: 100% (QA)

Answer 44800 Explanation A deferred tax asset is created wh... View the full answer