Betta Group just completed its second year of operations and has a deferred tax asset of $100,700 related to a net operating loss of $265,000 from the previous year. In the current year Betta generates $645,000 in revenues and incurs $341,000 in expenses. There are no permanent or temporary book-tax differences. Assuming the same tax rate as last year, what is the tax related journal entry for the current year? OA. Income Tax Refund Receivable 100,700 Deferred Tax Asset 100,700 OB. Deferred Tax Asset Income Tax Benefit 100,700 100,700 OC. Income Tax Expense 245,100 Income Tax Payable 144,400 Deferred Tax Asset 100,700 OD. Income Tax Expense 115,520 Income Tax Payable 14,820 Deferred Tax Asset 100,700
Betta Group just completed its second year of operations and has a deferred tax asset of $100,700 related to a net operating loss of $265,000 from the previous year. In the current year Betta generates $645,000 in revenues and incurs $341,000 in expenses. There are no permanent or temporary book-tax differences. Assuming the same tax rate as last year, what is the tax related journal entry for the current year? OA. Income Tax Refund Receivable 100,700 Deferred Tax Asset 100,700 OB. Deferred Tax Asset Income Tax Benefit 100,700 100,700 OC. Income Tax Expense 245,100 Income Tax Payable 144,400 Deferred Tax Asset 100,700 OD. Income Tax Expense 115,520 Income Tax Payable 14,820 Deferred Tax Asset 100,700
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 51P
Related questions
Question
Transcribed Image Text:Betta Group just completed its second year of operations and has a deferred tax asset of $100,700 related to a net operating loss of $265,000 from the previous year. In the current year Betta generates
$645,000 in revenues and incurs $341,000 in expenses. There are no permanent or temporary book-tax differences. Assuming the same tax rate as last year, what is the tax related journal entry for the
current year?
OA. Income Tax Refund Receivable
100,700
Deferred Tax Asset
100,700
OB. Deferred Tax Asset
Income Tax Benefit
100,700
100,700
OC. Income Tax Expense
245,100
Income Tax Payable
144,400
Deferred Tax Asset
100,700
OD. Income Tax Expense
115,520
Income Tax Payable
14,820
Deferred Tax Asset
100,700
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
