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A company has prepaid rent with a carrying amount value of $400000. A tax deduction was obtained at the time the rent was paid. a)
A company has prepaid rent with a carrying amount value of $400000. A tax deduction was obtained at the time the rent was paid.
a) assuming that the tax rate is 30%. what is the amount of the temporary difference?
b)does this give rise to a deferred tax asset or a deferred tax liability, and what is the amount of deferred tax asset/liability?
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