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Cool Drain co. reports total income tax expense of $175,000 in year 1. Taxable income for the year is $420,000 and the company's tax rate
Cool Drain co. reports total income tax expense of $175,000 in year 1. Taxable income for the year is $420,000 and the company's tax rate is 35 percent. On Cool Drain's Year 1 balance sheet, the company will report a:
1. deferred tax asset of $9,800 due to a temporary difference of $28,000
2. deferred tax liability of $9,800 due to a temporary difference of $28,000
3. deferred tax asset of $28,000 due to a temporary difference of $80,000
4. deferred tax liability of $28,000 due to a temporary difference of $80,000
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