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9. Big Red Inc. has taxable income of $500,000 in 2024, however, due to a single temporary difference pretax accounting income is $350,000. the beginning of the year no temporary differences existed and the tax rate is 30%. What amount for deferred taxes would Big Red report on its balance sheet for 2024? A) A deferred tax asset of $45,000 B) A deferred tax liability of $45,000

9. Big Red Inc. has taxable income of $500,000 in 2024, however, due to a single temporary difference pretax accounting income is $350,000. the beginning of the year no temporary differences existed and the tax rate is 30%. What amount for deferred taxes would Big Red report on its balance sheet for 2024? A) A deferred tax asset of $45,000 B) A deferred tax liability of $45,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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9. Big Red Inc. has taxable income of $500,000 in 2024, however, due to a single temporary difference pretax accounting income is $350,000. the beginning of the year no temporary differences existed and the tax rate is 30%. What amount for deferred taxes would Big Red report on its balance sheet for 2024? A) A deferred tax asset of $45,000 B) A deferred tax liability of $45,000 C) A deferred tax asset of $105,000 D) A deferred tax liability of $150,000
Transcribed Image Text:9. Big Red Inc. has taxable income of $500,000 in 2024, however, due to a single temporary difference pretax accounting income is $350,000. the beginning of the year no temporary differences existed and the tax rate is 30%. What amount for deferred taxes would Big Red report on its balance sheet for 2024? A) A deferred tax asset of $45,000 B) A deferred tax liability of $45,000 C) A deferred tax asset of $105,000 D) A deferred tax liability of $150,000
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