Bourne Company received rent in advance of $9,000 on December 31, 2016, which was taxable when received for income tax purposes. The company's effective tax rate was 30%, and this was the only temporary difference. Which of the following should be reported on the December 31, 2016 balance sheet?
A) $9,000 as a current deferred tax liability
B) $2,700 as a current deferred tax liability
C) $2,700 as a current deferred tax asset
D) $9,000 as a current deferred tax asset
Correct Answer:
Verified
Q15: When Congress changes the tax laws or
Q16: When Congress makes a tax law or
Q17: Deductions that are allowed for income tax
Q18: The amount of income tax expense as
Q19: GAAP require intraperiod income tax allocation to
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Q22: Exhibit 18-1
On December 31, 2015, Fredericksburg, Inc.
Q23: Differences between pretax financial accounting and taxable
Q24: A deferred tax asset would result if
A)
Q26: In 2016, its first year of operations,
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