Question
Bastion Company reported taxable and financial losses of $1,950,000 for 2020. Its pretax financial income for the last two years was as follows: 2018 $900,000
Bastion Company reported taxable and financial losses of $1,950,000 for 2020. Its pretax financial income for the last two years was as follows:
2018 $900,000
2019 $1,200,000
How much will the company recognize in deferred tax assets for the potential benefit related to the loss? The tax rate is 20% for all periods affected.
A. $30,000
B. $0
C. $390,000
D. $150,000
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Financial Accounting An International Introduction
Authors: David Alexander
7th Edition
129229583X, 978-1292295831
