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Candy Corp. leased a building and received the $80,000 annual rental payment on June 15, 2019. The beginning of the lease was July 1, 2019.
Candy Corp. leased a building and received the $80,000 annual rental payment on June 15, 2019. The beginning of the lease was July 1, 2019. Rental income is taxable when received. Candys tax rates are 25% for 2019 and 30% thereafter. Candy had no other permanent or temporary differences. Candy determined that no valuation allowance was needed. What amount of deferred tax asset should Candy report in its December 31, 2019, balance sheet?
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