Differences between pretax accounting income and taxable income were as follows during 2021:     ($ in millions) Pretax accounting income   $ 360     Permanent difference     (30 )         330     Temporary difference     (22 )   Taxable income   $ 308         The cumulative temporary difference as of the end of 2021 is $64 million (also the future taxable amount). The enacted tax rate is 25%. What is the deferred tax asset or liability to be reported in the balance sheet?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Differences between pretax accounting income and taxable income were as follows during 2021:
  

  ($ in millions)
Pretax accounting income   $ 360    
Permanent difference     (30 )  
      330    
Temporary difference     (22 )  
Taxable income   $ 308    
 

  
The cumulative temporary difference as of the end of 2021 is $64 million (also the future taxable amount). The enacted tax rate is 25%. What is the deferred tax asset or liability to be reported in the balance sheet?

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