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Inferno Inc. is embroiled in a lawsuit. In 2018, they recognize that a loss of $65,000 is probable. Given a tax rate of 40%, how
Inferno Inc. is embroiled in a lawsuit. In 2018, they recognize that a loss of $65,000 is probable. Given a tax rate of 40%, how will this be treated in the accounting records?
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deferred tax asset of $26,000
deferred tax liability of $65,000
deferred tax asset of $65,000
deferred tax liability of $26,000
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