Question
As of December 31, 2021, Cheese Company did not have any transactions that resulted in temporary differences. In 2022, Cheese accrued an estimated $549,000 loss
As of December 31, 2021, Cheese Company did not have any transactions that resulted in temporary differences. In 2022, Cheese accrued an estimated $549,000 loss on the disposal of unused plant facilities. The facilities were sold in March 2023 and a $549,000 loss was recognized for tax purposes. The enacted tax rate is 18% for both 2022 and 2023. Cheese paid $2,400,000 in income taxes in 2022. Required: Determine the deferred tax consequence (i.e., deferred tax asset or deferred tax liability and dollar amount) reported on Cheeses balance sheet at December 31, 2022.
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