At the end of 2014,the only expected future temporary difference is implied by the following account found in the balance sheet: The footnotes reveal that the prepaid rent applies only to 2015.You would also expect to find which of the following in the balance sheet:

Question

At the end of 2014,the only expected future temporary difference is implied by the following account found in the balance sheet:  The footnotes reveal that the prepaid rent applies only to 2015.You would also expect to find which of the following in the balance sheet:

Quizplus · Accepted Answer

Since the only expected future temporary difference is related to the prepaid rent that applies only to 2015, it indicates that the company has already paid the rent in advance for the next year. As a result, the company may claim tax deductions on the prepaid rent amount in 2015, which would create a future tax benefit. Therefore, a current deferred tax asset should be expected to appear on the balance sheet.

At the End of 2014,the Only Expected Future Temporary Difference