Chapter 6, Problem 18AP

Using a 21 percent rate, compute the deferred tax asset or deferred tax liability (if any) resulting from the following:

1. a. A transaction resulting in a $31,000 temporary excess of book income over taxable income.
2. b. A transaction resulting in an $18,400 permanent excess of book income over taxable income.
3. c. A transaction resulting in a $55,000 temporary excess of taxable income over book income.