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[9] Assume that Betamax Inc. on December 31, 2019, carried balances in the following three accounts as stated below. The tax rate is 40%.
[9] Assume that Betamax Inc. on December 31, 2019, carried balances in the following three accounts as stated below. The tax rate is 40%. $2,304,000 [UCC Balance $3,828,000]; reversible over the next 10 years; $237,000 reversible when the liability is settled. Capital Assets Warranty Liability Installment Sales $ 48,000 reversible equally over the next two years. If Betamax reported under IFRS, how would the Deferred Tax Asset/Liability be reported? Select one: Oa. $609,600 as a Long Term Liability; $94,800 as a Current Asset; and $19,200 as a Current Liability. Ob. $609,600 as a Long Term Asset; $94,800 as a Current Asset; and $19,200 as a Current Liability. Oc. $609,600 as a Long Term Liability; $75,600 as a Current Asset. Od. $685,200 as a Long Term Asset. e. Cannot be determined from the given data.
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