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Luck Co's income statement for its first year of operations shows pretax income of $4.500.000. In addition, the following differences existed between Luck's tax return
Luck Co's income statement for its first year of operations shows pretax income of $4.500.000. In addition, the following differences existed between Luck's tax return and records: Warranty expense Depreciation expense Tax return $100,000 300.000 Accounting records $220.000 150.000 Luck's current-year tax rate is 30%, and the enacted rate for future years is 25%. What should Luck report as deferred tax consequences in its balance sheet for the year? $67,500 deferred tax liability $67.500 deferred tax asset $7.500 deferred tax asset $7.500 deferred tax ability
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