Question
6. Tergusons Asian Rug and Carpet Importers started business in 2021. In that year, Tergusons purchased a delivery van at the end of 2021 for
6. Tergusons Asian Rug and Carpet Importers started business in 2021. In that year, Tergusons purchased a delivery van at the end of 2021 for $100,000 that was put in service in January of 2022. For tax purposes the van was expensed in 2021 and for financial reporting purposes, it is being depreciated over 5 years on a straight-line basis, beginning in 2022, $20,000 each year (assume no salvage value). The enacted tax rates are 30% for 2021 and 2022 and 25% thereafter. Tergusons deferred tax accounts at the end of 2022 (the end of the second year of operation) would include a ______________
Deferred Tax Asset of $20,000
Deferred Tax Asset of $24,000
Deferred Tax Liability of $20,000
Deferred Tax Liability of $24,000
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