Question
In 2021, Pharoah Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $ 3520000. The facilities were sold in
In 2021, Pharoah Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $ 3520000. The facilities were sold in March 2022 and a $ 3520000 loss was recognized for tax purposes. Also in 2021, Pharoah paid $ 140400 in premiums for a two-year life insurance policy in which the company was the beneficiary. Assuming that the enacted tax rate is 20% in both 2021 and 2022, and that Pharoah paid $ 1090000 in income taxes in 2021, the amount reported as net deferred income taxes on Pharoah's balance sheet at December 31, 2021, should be a
$ 352000 asset.
$ 704000 asset.
$ 949600 asset.
$ 352000 liability.
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