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Bennet Corp. leased a building and received the $100,000 annual rental payment on June 15, 2022. The beginning of the lease was July 1, 2022.
Bennet Corp. leased a building and received the $100,000 annual rental payment on June 15, 2022. The beginning of the lease was July 1, 2022. Rental income is taxable when received. Bennet's tax rates are 15% for 2022 and 20% for 2023 and after. Bennet had no other permanent or temporary differences. Bennet determined that no valuation allowance was needed. In its December 31, 2022, balance sheet, Bennet should report:
A , $7.500 deferred tax liability.
B, $10.000 deferred tax asset.
C, $10,000 deferred tax liability.
D, $7,500 deferred tax asset.
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