The following information was taken from the accounting records of Lancer Inc, for the year ending 2020. Pretax accounting income $ 1,500,000 Interest Revenue on Municipal bonds 100,000 Litigation expense 2, 000,000 Excess Depreciation for tax purposes 1, 300,000 Deferred revenue 200,000 The tax rate for 2020 is 40% The total Deferred Tax Asset for 2020 should be : A) $4,000 B) $800,000 C) $520,000 D) $80,000
The following information was taken from the accounting records of Lancer Inc, for the year ending 2020. Pretax accounting income $ 1,500,000 Interest Revenue on Municipal bonds 100,000 Litigation expense 2, 000,000 Excess Depreciation for tax purposes 1, 300,000 Deferred revenue 200,000 The tax rate for 2020 is 40% The total Deferred Tax Asset for 2020 should be : A) $4,000 B) $800,000 C) $520,000 D) $80,000
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Question
The following information was taken from the accounting records of Lancer Inc, for the year ending 2020.
Pretax accounting income $ 1,500,000
Interest Revenue on Municipal bonds 100,000
Litigation expense 2, 000,000
Excess Depreciation for tax purposes 1, 300,000
Deferred revenue 200,000
The tax rate for 2020 is 40%
The total
A) $4,000 |
||
B) $800,000 |
||
C) $520,000 |
||
D) $80,000 |
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