The following information was taken from the accounting records of Lancer Inc, for the year ending...

 

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The following information was taken from the accounting records of Lancer Inc, for the year ending 2020. Pretax accounting income $1,500,000 Interest Revenue on Municipal bonds 100,000 Litigation expense 2,000,000 Excess Depreciation for tax purposes. 1,300,000 Deferred revenue 200,000 The tax rate for 2020 is 40% The total Deferred Tax Asset for 2020 should be: A) $4,000 B) $800,000 C) $520,000 D) $80,000 The following information was taken from the accounting records of Lancer Inc, for the year ending 2020. Pretax accounting income $1,500,000 Interest Revenue on Municipal bonds 100,000 Litigation expense 2,000,000 Excess Depreciation for tax purposes. 1,300,000 Deferred revenue 200,000 The tax rate for 2020 is 40% The total Deferred Tax Asset for 2020 should be: A) $4,000 B) $800,000 C) $520,000 D) $80,000

Answer rating: 100% (QA)

Deferred revenue creates a deferred tax a... View the full answer