Due to differences between depreciation reported in the income statement and depreciation deducted for tax purposes Lucas Corp. has two million dollars in temporary differences that will increase taxable income next year. Assuming that Lucas has no other temporary differences, deferred income taxes should be reported in this year's ending balance sheet as a:
A) Current deferred asset.
B) Noncurrent deferred tax liability.
C) Current deferred tax liability.
D) Noncurrent deferred tax asset.
Correct Answer:
Verified
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