Inferno Inc.is embroiled in a lawsuit.In 2015 they recognize that a loss of $45,000 is probable.Given a tax rate of 40%,how will this be treated in the accounting records?
A) deferred tax asset of $18,000
B) deferred tax liability of $18,000
C) deferred tax asset of $45,000
D) deferred tax liability of $45,000
Correct Answer:
Verified
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