11/29/23, 9:36 AM
Question 18 of 100 - Quiz Two
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In 2023, Bridgeport Ltd. accrued, for book purposes, estimated losses on disposal of unused plant
facilities of $754000. The facilities were sold in March 2024 and a $754000 loss was recognized
for tax purposes. Also, in 2023, Bridgeport paid $50000 in premiums for a two-year life insurance
policy in which the company was the bene±ciary. Assuming that the enacted tax rate is 25% in
both 2023 and 2024, and that Bridgeport paid $392080 in income taxes in 2023, the amount
reported as the deferred tax asset or liability on Bridgeport's SFP at December 31, 2023, should
be a
$176000 asset.
Cannot be determined from the information given.
$188500 asset.
$188500 liability.
$754000 × 25% =
$188500
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