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For its first taxable year, Rony Incorporated's accounting records showed the following: Operating loss per books Temporary book/tax difference Net operating loss for tax

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For its first taxable year, Rony Incorporated's accounting records showed the following: Operating loss per books Temporary book/tax difference Net operating loss for tax Required: $ (806,000) 146,000 $ (660,000) a. Use a 21 percent rate to compute Rony's deferred tax asset with respect to the $146,000 book/tax difference. b. Use a 21 percent rate to compute Rony's deferred tax asset with respect to its $660,000 NOL carryforward. c. Compute Rony's tax benefit (negative tax expense) reported on its first income statement.

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