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A Magazine Publisher Collects One Year in Advance for Subscription

Question 55

Multiple Choice

A magazine publisher collects one year in advance for subscription revenue. In the year of providing the magazines to customers, the company would record:


A) An increase in a deferred tax asset.
B) A decrease in a deferred tax asset.
C) An increase in a deferred tax liability.
D) A decrease in a deferred tax liability.

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