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How is this answer reached? A company reported pretax financial statement income of $420,000 for Year 1. Taxable income for Year 1 was $300,000 due

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A company reported pretax financial statement income of $420,000 for Year 1. Taxable income for Year 1 was $300,000 due to a temporary timing difference in depreciation expenses. The income tax rate is 30 percent. In its Year 1 balance sheet, the company should record a deferred tax: asset of $36,000 asset of $120,000 X O liability of $36,000 V O liability of $120,000 X Incorrect

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