YDNet, Inc., is an accrual-basis taxpayer that publishes magazines. During the current year, it received $48,000 for prepaid subscriptions. At of the end of the year, the remaining balance in these prepaid subscriptions was $38,000. The companys federal marginal tax rate is 21 percent.

a. What is the Schedule M-1 (M-3) adjustment?

b. What is the deferred tax asset or liability?

Answer rating: 100% (QA)

Answer a To calculate the Schedule M1 M3 adjustment we need to determine the amount of revenue recog... View the full answer