Question
Financial Magazine Company received $15,000 of subscriptions in advance for 2014. Subscription revenue will be recognized equally in 2015 , 2016, and 2017, for financial
Financial Magazine Company received $15,000 of subscriptions in advance for 2014. Subscription revenue will be recognized equally in 2015 , 2016, and 2017, for financial accounting purposes but all of the $15,000 will be recognized in 2014 for tax purposes . There is additional income of $50,000 each year and the tax rate is 40% .
Q= Deferred tax asset or deferred tax liability?
Q= Amount of deferred tax asset or deferred tax liability at 12/31/14
Q= BY GAAP financial report income tax expense for 2014, 2015, 2016, 2017
Q= Journal entries at 12/31/14 , 12/31/15 , 12/31/16 , 12/31/17
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