Zion Corp. began operations as a company on 1/1/2019. The following schedule outlines revenue recognition each year
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Zion Corp. began operations as a company on 1/1/2019. The following schedule outlines revenue recognition each year based on differing GAAP and tax rules related to installment sales and advanced rental receipts. All differences are expected to be temporary.
Year-ended | Revenues - GAAP Reporting | Revenues - Tax Reporting |
12/31/19 | 300,000 | 120,000 |
12/31/20 | 50,000 | 120,000 |
12/31/21 | 65,000 | 200,000 |
12/31/22 | 90,000 | 80,000 |
12/31/23 | 120,000 | 30,000 |
Assuming a tax rate of 25% in all years, what amount of deferred tax asset OR deferred tax liability will Zion report on its balance sheet related to differences in revenue recognition as of 12/31/2023?
If your answer is a deferred tax asset, make the number positive. If your answer is a deferred tax liability, make the number negative.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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