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Which of the following deferred tax accounts and balances would Blossom report at December 31, 2025? Account Deferred Tax Liability Deferred Tax Asset Deferred Tax Asset Deferred Tax Liability Balance $30400 $18800 $30400 $18800

Which of the following deferred tax accounts and balances would Blossom report at December 31, 2025? Account Deferred Tax Liability Deferred Tax Asset Deferred Tax Asset Deferred Tax Liability Balance $30400 $18800 $30400 $18800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom, Inc. had pre-tax accounting income of $2500000 and a tax rate of 20% in 2025, its first year of operations. In 2025, the company had the following transactions: Received rent from Nancy, Co. for 2026 Municipal bond income Depreciation for tax purposes in excess of book depreciation Installment sales profit to be taxed in 2026 Account Which of the following deferred tax accounts and balances would Blossom report at December 31, 2025? Deferred Tax Liability Deferred Tax Asset Deferred Tax Asset Deferred Tax Liability Balance $30400 $18800 $30400 $94000 118000 58000 $18800 160000
Transcribed Image Text:Blossom, Inc. had pre-tax accounting income of $2500000 and a tax rate of 20% in 2025, its first year of operations. In 2025, the company had the following transactions: Received rent from Nancy, Co. for 2026 Municipal bond income Depreciation for tax purposes in excess of book depreciation Installment sales profit to be taxed in 2026 Account Which of the following deferred tax accounts and balances would Blossom report at December 31, 2025? Deferred Tax Liability Deferred Tax Asset Deferred Tax Asset Deferred Tax Liability Balance $30400 $18800 $30400 $94000 118000 58000 $18800 160000
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