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Wick Company received rent in advance of $6,000 on December 31, Year 6, which was taxable when received for income tax purposes. The company's effective tax rate was 30%, and this was the only temporary difference. Which of the following should be reported on the December 31, Year 6, balance sheet?

Wick Company received rent in advance of $6,000 on December 31, Year 6, which was taxable when received for income tax purposes. The company's effective tax rate was 30%, and this was the only temporary difference. Which of the following should be reported on the December 31, Year 6, balance sheet?

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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Wick Company received rent in advance of $6,000 on December 31, Year 6, which was taxable when received for income tax purposes. The company's effective tax rate was 30%, and this was the only temporary difference. Which of the following should be reported on the December 31, Year 6, balance sheet?
Transcribed Image Text:Wick Company received rent in advance of $6,000 on December 31, Year 6, which was taxable when received for income tax purposes. The company's effective tax rate was 30%, and this was the only temporary difference. Which of the following should be reported on the December 31, Year 6, balance sheet?
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