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Inferno Inc. is embroiled in a lawsuit. In 2015 they recognized that a loss of $45,000 is probable. Given a tax rate of 40%, how
Inferno Inc. is embroiled in a lawsuit. In 2015 they recognized that a loss of $45,000 is probable. Given a tax rate of 40%, how will this be treated in the accounting records?
A) deferred tax liability of $45,000
B) deferred tax liability of $18,000 C) deferred tax asset of $18,000 D) deferred tax asset of $45,000
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