Question
Crescent Company reported the following results for the year ended December 31, 2022, its first year of operations: Income (per books before income taxes) 2,000,000
Crescent Company reported the following results for the year ended December 31, 2022, its first year of operations: Income (per books before income taxes) 2,000,000 Taxable income 3,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2023. What should Crescent record as a net deferred tax asset or liability for the year ended December 31, 2022, assuming that the enacted tax rates in effect are 20% in 2022 and 25% in 2023? a. no deferred tax asset or liability b. $300,000 deferred tax asset c. $300,000 deferred tax liability d. $240,000 deferred tax asset e. $240,000 deferred tax liability
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