A company receives advance payments from customers that are immediately taxable butwill not be recognized for accounting purposes until the company fulfi lls its obligation.Th e company will most likely record:A . a deferred tax asset.B . a deferred tax liability.C . no deferred tax asset or liability.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 23GI
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A company receives advance payments from customers that are immediately taxable but
will not be recognized for accounting purposes until the company fulfi lls its obligation.
Th e company will most likely record:
A . a deferred tax asset.
B . a deferred tax liability.
C . no deferred tax asset or liability.

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