Chua Corporation has a taxable temporary difference related to depreciation of $715,000 at December 31, 2014. This

Question:

Chua has a taxable temporary difference related to depreciation of $715,000 at December 31, 2014. This difference will reverse as follows: 2015, $53,000; 2016, $310,000; and 2017, $352,000. Enacted tax rates are 25% for 2015 and 2016, and 31% for 2017. Calculate the amount that Chua should report as a deferred tax asset or liability at December 31, 2014.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...