Accounting Rodd Co. reports a taxable and pretax financial loss of $400,000 for 2021. Rodd's taxable and
Fantastic news! We've Found the answer you've been seeking!
Question:
Accounting Rodd Co. reports a taxable and pretax financial loss of $400,000 for 2021. Rodd's taxable and pretax financial income and tax rates for the last two years were: 2019 $400.000 30% 2020 400,000 35% 2021 ($400,000) 40% The amount that Rodd should report on their balance sheet at the end of 2021 if they carry their loss forward is: (You can assume a 40% future tax rate.)
a. 160.000 deferred tax asset
b. $160,000 deferred tax liability
c. $160.000 Income Tax Receivable
d. $160.000 Income lax Pavable
e. None of these are correct
Posted Date: